How much income must don report for the tax year

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Point 1: In the current year, the DOE Partnership received revenues of $100,000 and paid the following amounts: $20,000 in rent and utilities, a $30,000 guaranteed payment to 50% partner Don, $6,000 to partner Eugene for consulting services, and $10,000 as a distribution to partner Olivia. In addition, the partnership earned $4,000 of qualifying dividend income during the year. Don's basis in his partnership interest was $35,000 at the beginning of the year, and includes a $10,000 share of partnership liabilities. At the end of the year, his share of partnership liabilities was $20,000.

Question 1: How much income must Don report for the tax year, and what is his basis in his partnership interest at the end of the year?

Reference no: EM132499562

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