Determining end of the taxable year

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Reference no: EM13144992

Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe's adjusted basis in his partnership interest is $10,000 and Jane's adjusted basis is $2,000. During the year Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following partnership activity for the year, determine each partner's adjusted basis in Quick and Reddy at the end of the taxable year.

Ordinary Income................................$60,000

Section 1231 gains.............................$1,000

Interest Income from municipal bonds...........$500

Short-Term capital losses......................$2,000

Charitable contributions.......................$3,000

Reference no: EM13144992

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