What is margaret''s adjusted basis in her partnership


At the beginning of 2012, Margaret's adjusted basis in her 30 percent interest in MP Partnership, a general partnership, was $3,000. During 2012, Margaret did not make any additional contributions to MP Partnership, and Margaret's share of MP Partnership liabilities did not change. During 2012, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2012:

Taxable income $15,000
Tax-exempt interest $6,000
Section 1231 loss ($10,000)

What is Margaret's adjusted basis in her partnership interest in MP Partnership at the end of 2012?

 

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Accounting Basics: What is margaret''s adjusted basis in her partnership
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