Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt was $16,000 at the beginning of the year and $19,000 at the end of the year. During the year, she was allocated $65, 000 of partnership ordinary business loss. - How much loss can flow through to Jenna (only consider the tax basis limitation)? Hint: use proper sequencing.

Donna does not think she has an income tax problem but would like to discuss her situation with you just to make sure there is no unexpected tax liability. Base your suggestions on the following relevant financial information: a. Donnas share of the SAT Partnership income is 150,000, but none of the income can be distributed because the partnership needs the cash for operations. b. Donnas Social Security benefits totaled 8,400, but Donna loaned the cash received to her nephew. c. Donna assigned to a creditor the right to collect 1,200 of interest on some bonds she owned. d. Donna and her husband lived together in California until September, when they separated. Donna has heard rumors that her husband had substantial gambling winnings since they separated.

Nell and Kirby are in the process of negotiating their divorce agreement, to be finalized in 2019. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement? a. In consideration for her one-half interest in their personal residence. Kirby will transfer to Nell stock with a value of 200,000 and 50,000 of cash. Kirbys cost of the stock was 150,000, and the value of the personal residence is 500,000. They purchased the residence three years ago for 300,000. b. Nell will receive 1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate. c. Nell is to have custody of their 12-year-old son. Bobby. She is to receive 1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only 300 per month for the remainder of her life.

Blaine, Cassie, and Kirstin are equal partners in the Maize Partnership. During the year, Maize incurs qualified dividends and a charitable contribution deduction. Explain how the following could happen. a. Blaine pays less tax than Cassie and Kirstin on his share of the qualified dividends. b. Cassie cannot deduct any of her share of the charitable contributions.