TO0l 3s HinUtes 5b seconds Jean and Mary each have a 50% interest in JM Partners
ID: 2410987 • Letter: T
Question
TO0l 3s HinUtes 5b seconds Jean and Mary each have a 50% interest in JM Partnership The partnership and the partners all file calendar year tax turns. For the YeBr 1 tax year return, JM Partnership had a $22,000 loss. Jean's adjusted basis in her partnership st on Januarý 1, Year 1, was $5,000 JM Partnership reported a $25,000 gain on its Year 2 tax year return. There are no other adjustments to Jean's basis in the partnership for Year 1 or Year 2. There were no distributions to the partners in either year. What is the amount of partnership inc Form 1040? A. $6,500 B. C. $1,500 $12.500 D. S0Explanation / Answer
The share of loss in previous year i.e. $11000 will be restricted to the basis in partenership i.e.$5000 and the balance 6000$ will be carried forward to next year( current Year).
In this year,
Share of Income 12500
(-) Loss brought forward (6000)
Income to be shown $6500
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