What the Phil basis in the partnership interest

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Question - Phil is a 40% partner in the XYZ LP. At the beginning of the tax year, Phil's basis in the partnership interest was $150,000, including his share of partnership liabilities. During the current year, XYZ reported an ordinary loss of $60,000 (before the following payments to the partners). In addition, XYZ made an ordinary distribution of $8,000 to Phil and paid partner Steve a $20,000 consulting fee. At the end of the year, Phil's share of partnership liabilities decreased by $20,000. Assuming loss limitation rules do not apply, what the Phil's basis in the partnership interest at the end of the year?

Reference no: EM132976748

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