What is cassandra basis in her c-c ltd partnership interest

Reference no: EM132730618

On July 15th Cassandra is a 10% partner in C&C, Ltd. Her basis in the interest on January 1, 2019 is $60,000 (including $30,000 of liabilities, which is her share of the partnership nonrecourse debt). At the close of the 2019 tax year, C&C, Ltd.'s Schedule K reflected a $4,000,000 loss. The following transactions also occurred in 2019:

On February 12, Cassandra took a $130,000 cash distribution from C&C, Ltd.
C&C entered into a risky financing arrangement, borrowing $2,500,000. As part of the agreement, the lender required all partners to assume personal liability for the loan in the event C&C is unable to satisfy the repayment terms.
Still suffering cash flow issues, C&C was forced to sell one of its properties, resulting in a long-term capital gain of $2,000,000
In addition, Cassandra holds an interest in MNOP, LP., from which she received $275,000 in passive activity income for the 2019 tax year.

Problem 1. What is Cassandra's basis in her C&C, Ltd. Partnership interest at the end of 2019? Please show the computation.

Reference no: EM132730618

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