mhlester
Level 3

Thank you.

Using a simpler set of facts,

Partner A contributes $50,000 at inception

In year 1, Partner's A's share of QNR debt is $100,000 and his share of the loss is $60,000, leaving him with a negative capital account of $10,000 at the end of year 1.

Is his tax basis $90,000 or $100,000?

0 Cheers