Partnerships Can you explain in detail the answers to this question, please?
Wayne is one of two general partners in ZMZ Partnership. They share equally in income and losses. At the beginning of the current tax year, Wayne's adjusted basis in ZMZ is 6,250. He did not contribute or withdraw funds during the tax year and did not increase his share of partnership labilities. ZMZ has an ordinary business loss of 14,000 during the current tax year, nd Wayne has 10,000 taxable income from other unrelated sources.
1: How much (if any) of the ZMZ loss can Wayne deduct on his personal tax return for the current tax year?
2: What is Wayne's adjusted basis in ZMZ Partnership at the end of the current tax year? |