Jayanthi and Krish each own a 50 percent general partner interest in the JK Part

Question

Jayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnership's 2016 activities: Selling e Depreciation expense Long-term capital gain 280,800 30,800 2,000 100,800 ble expenses Partnership debts, beginning of the year Partnership debts, end of the year Partnership distributions 50,800 50,800 Jayanthi e-1. Calculate the partnership's ordinary (nonseparately stated) income. a-2. Indicate which items must be separately stated by selecting "Yes" and which items must not be separately stated by selecting No" b. Calculate Jayanthis allocable share of partnership items. c. If Jayanthi has no other sources of taxable income, what is her total gross income for 2016? d. At the beginning of the year, Jayanthi's adjusted tax basis in her partnership interest was $25.000. Calculate her ending adjusted tax basis in her partnership interest.

Explanation / Answer

Non seperately stated items Seperately Stated Items a Sales Revenue      500,000 Long-term capital gain      9,000 Less: Selling Expenses    (200,000) Nondeductible expenses      2,000 Less: Depreciation Expenses      (30,000) Distributions 100,000 Ordinary Income $ 270,000 b Ordinary income $135,000 Long-term capital gain $4,500 Nondeductible expenses $1,000 Distributions $50,000 c Ordinary Income $135,000 Long-term capital gain $4,500 Total Gross Income $139,500 d Beginning Basis $25,000 Add: Ordinary Income $135,000 Capital Gain $4,500 Share of debt increase $10,000 Less: Non deductible expenses ($1,000) Distribution ($50,000) Ending Basis $123,500

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