Federal Taxation :1. Assume Entity is a General Partnership - Compute Chris's outside basis

1. Assume Entity is a General Partnership - Compute Chris's outside basis.


Partner A has an outside basis of $50,000 in her 35% interest of entity

For the year Partner A's share as listed on her K-1 is as follows:


Business income in Box 1 25,000

Dividend income in Box 6a 11,000

Qualified Dividends Box 6b 10,000

Charitable contributions box 13A 3,000

Tax Exempt income Box 18A 1,500

Nondeductible Expenses (fines) box

18C 750

Distributions Box 19A 13,000

Part II Section K Liabilities 50,000

Last Year's number for liabilities was 48,000

, Beginnin

g O/S A/B 10,000

BusinesIn

1 c 25,000

6a Divs 11,000

18A T/E Int 1,500

Inc in Liabs 2,000

Subtotal 49,500

Cash Distrib -13,000

Subtotal 36,500

18C Fines -750

Subtotal 35,750

13A Charity -3,000

Ending O/S A/B 32,750




50000 - 48000 = 2000