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Problem 2: Wayne has a beginning basis in a partnership of $46,000.
Problem 2: Wayne has a beginning basis in a partnership of $46,000.
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Problem 2: Wayne has a beginning basis in a partnership of $46,000. His share of income and expense from the partnership consists of the following amounts:
Ordinary income $86,000
Guaranteed payment 24,000
Long-term capital gain 31,000
- 1231 gain 8,600
Charitable contributions 4,000
- 179 expense 36,000
Cash distribution 12,000
- What is Wayne’s self-employment income?
Ordinary Income $ 86, 000
Guaranteed Income 24, 000
$110,000
Less: Section 179 (36,000)
Self-employment Income $74,000
- Calculate Wayne’s basis at the end of the year.
Beginning Basis $46,000
Guaranteed Payment 24,000
Long-term Capital Gain 31,000
1231 Gain 8,600
Charitable contribution (4,000)
Section 179 (36,000)
Cash distribution (12,000)
Ending Basis $57,600
