Jim's basis in his partnership is $200,000. His share of the current year partnership income is $60,000. The partnership paid him a $75,000 distribution in the current year. What is his new basis in the partnership at the end of the year and what is his taxable income from the partnership?

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Jim's new basis in the partnership at the end of the year is calculated by starting with his initial basis ($200,000), adding his share of the income ($60,000), and then subtracting the distribution he received ($75,000). This results in a new basis of $185,000 ($200,000 + $60,000 - $75,000). His taxable income from the partnership is the income allocated to him, which is $60,000.

Jim's Basis in His Partnership Is $200,000