Data table More info Before including the current year's gain and loss, Sandy and Dan had $38,000 and $85,000 bases for their partnership interests, respectively. The partnership has no nonrecourse liabilities. Dan has no further obligation to make any additional investment in the partnership. Ordinary loss 150,000 Long-term capital gain 35,000
Data table More info Before including the current year's gain and loss, Sandy and Dan had $38,000 and $85,000 bases for their partnership interests, respectively. The partnership has no nonrecourse liabilities. Dan has no further obligation to make any additional investment in the partnership. Ordinary loss 150,000 Long-term capital gain 35,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 37P
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Transcribed Image Text:Data table
More info
Before including the current year's gain and loss, Sandy and Dan had $38,000 and
$85,000 bases for their partnership interests, respectively. The partnership has no
nonrecourse liabilities. Dan has no further obligation to make any additional
investment in the partnership.
Ordinary loss
$
150,000
Long-term capital gain
35,000
Transcribed Image Text:Sandy and Dan own 40% and 60%, respectively, of the SD Partnership, which manufactures clocks. The partnership is a limited partnership, and Sandy is the only general partner. She works full-time in the
business. Dan essentially is an investor in the firm and works ful-time at another job. Dan has no other income except his salary from his full-time employer. During the current year, the partnership reports the
following gain and loss:
E (Click the icon to view the gain and loss.)
1 (Click the icon to view additional information.)
Read the requirements
Requirement a. What gain or loss should each partner report on his or her individual tax return?
Begin by determining the amount and character of gain or loss Sandy should report.
Character
Amount
- X
Requirements
What gain or loss should each partner report on his or her individual tax
return?
а.
b. If the partnership borrowed an additional $110,000 of recourse liabilities, how
would your answer to Part a change?
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