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At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $121,000, including...

At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $121,000, including his $12,100 share of partnership debt. At the end of the tax year, his share of debt was $18,150. His share of the partnership's income for the year was $48,400, and he received cash distributions totaling $30,250. In addition, his share of the partnership's nontaxable income was $2,420. How much is Barnaby's basis at the end of the tax year?

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Answer #1

Ans. Calculation of barnaby's basis at end of each year;

Particulars Amount Amount

Initial basis in partnership

(including 12100 share of partnership debt)

 $121000
Less: partnership debt (12100)
Initial basis after excluding partnership debt $108900
Add:
Share of ordinary income $48400
Share of partnership tax- exempt income $2420
Share of partnership debt $18150 $68970
Less:
Receipt of cash distributors from partnership (30250)
Barnaby's basis at end of the tax year $147620

Therefore from above computation barnaby's basis at end of each tax year was $147,620

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