14. Partner's Basis. (Obj. 4) At the beginning of the vear, Robin's basis in her 250 e loss of R&B partnership is $4,000. That year, on Schedule K, R&B reports an ordinary toss oe $36,000, taxable interest of $4,500, tax-exempt interest of $3,000, and Section 179 expees of $25,000. During the year, R&B's debt increased by $42,000. Discuss the tax consequences of these partnership activities on Robin's personal income tax return, and compute her basis in R&B partnership at the end of the year.
14. Partner's Basis. (Obj. 4) At the beginning of the vear, Robin's basis in her 250 e loss of R&B partnership is $4,000. That year, on Schedule K, R&B reports an ordinary toss oe $36,000, taxable interest of $4,500, tax-exempt interest of $3,000, and Section 179 expees of $25,000. During the year, R&B's debt increased by $42,000. Discuss the tax consequences of these partnership activities on Robin's personal income tax return, and compute her basis in R&B partnership at the end of the year.
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 21P
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Transcribed Image Text:14. Partner's Basis. (Obj. 4) At the beginning of the year, Robin's basis in her 25% interest in
R&B partnership is $4,000. That year, on Schedule K, R&B reports an ordinary loss of
$36,000, taxable interest of $4,500, tax-exempt interest of $3,000, and Section 179 expense
of $25,000. During the year, R&B's debt increased by $42,000. Discuss the tax consequences
of these partnership activities on Robin's personal income tax return, and compute her basis
in R&B partnership at the end of the year.
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