Question

Steve's basis in his SAW Partnership interest is $200,000 at the beginning of the tax year, including all adjustments. His allocable share of partnership items are as follows: ($120,000) of ordinary loss, $6,000 tax-exempt interest income, and a $14,000 long-term capital gain. In addition, the LLC distributed $20,000 of cash to Steve during the year. During the year, Steve's share of partnership
asked Aug 30, 2017
debt increased by $10,000 . Steve's ending basis in his LLC interest is $80,000.

a. True
b. False
Indicate whether the statement is true or false

Answer 1

This is true...........

Answer 2

I think this is false.