Question - 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.