Problem 20-75 (LO 20-5, LO 20-6) (Algo) [The following information applies to the questions displayed below.] Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated $20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and received a cash distribution of $52,200. Note: Do not round intermediate calculations. Problem 20-75 Part a (Algo) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704- 1(d)(2) and Revenue Rule 66-94.] Amount Deducted Currently §1231 losses $ 20,880 Short-term capital losses $ 3,000
Problem 20-75 (LO 20-5, LO 20-6) (Algo) [The following information applies to the questions displayed below.] Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated $20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and received a cash distribution of $52,200. Note: Do not round intermediate calculations. Problem 20-75 Part a (Algo) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704- 1(d)(2) and Revenue Rule 66-94.] Amount Deducted Currently §1231 losses $ 20,880 Short-term capital losses $ 3,000
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 14MCQ
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![Problem 20-75 (LO 20-5, LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated
$20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and
received a cash distribution of $52,200.
Note: Do not round intermediate calculations.
Problem 20-75 Part a (Algo)
a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704-
1(d)(2) and Revenue Rule 66-94.]
Amount
Deducted
Currently
§1231 losses
$
20,880
Short-term capital losses
$
3,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffdd90f0b-d641-47e7-96c3-fc106ab6cfed%2F5afaafcc-ae7f-47b1-aae6-1565be5ddb47%2Flmzmjw4_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 20-75 (LO 20-5, LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated
$20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and
received a cash distribution of $52,200.
Note: Do not round intermediate calculations.
Problem 20-75 Part a (Algo)
a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704-
1(d)(2) and Revenue Rule 66-94.]
Amount
Deducted
Currently
§1231 losses
$
20,880
Short-term capital losses
$
3,000
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