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User posted a question Mar 25, 2012 at 1:34pm 4.


User posted a question Mar 25, 2012 at 1:34pm
4.) Wilson has a 40% interest in the assets and income of the CC&W Partnership, and the basis of his partnership interest is $45,000 at the beginning of 2011. During 2011, the partnership's net loss is $60,000 and wilson's share of the loss is $24,000. Also, Wilson receives a cash distribution from the partnership of $12,000 on June 30,2011.

a.) Indicate the amount of income or loss from the partnership that should be reported by Wilson in 2011 on his Individual Income Tax Return.

b.)Calculate Wilson's basis in his partnership interest at the end of 2011.

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Solution Willson Tax Return..docx

Solution:
(a)
Share of loss from partnership business.
Willson can deduct his loss of $24,000 in his personal tax return from the income if he has from any other source.
There is a limit to deduct...

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