Reference no: EM132727121
Ted and Marshall formed Ahoyr Partnership in 2009. They are equal partners. The partnership recourse debt balance at the end of 2018 is $130,000. Ted's outside basis at the beginning of 2019 is $160,000. Marshall's outside basis at the beginning 2019 is $115,000. At the end of 2019 Ahoyjs recourse debt balance is $30,000. The partnership debt is shared equally between the partners.
Below is additional information regarding Ahoyjs activities for 2019.
Cash distribution to Ted $15,000
Long Term capital gain $3,000
Interest Income {bank} $4,600
Tax Exempt Income $3,000
Charitable contributions $10,000
Living expenses paid on behalf of Marshall $20,000
Ordinary Business Income $480,000
Section 179 $200,000
Problem 1: What is Marshall's outside basis at the end of the year?