Ask Question
14 February, 16:02

For the tax year, OSH partnership reported a $74,000 ordinary loss and a $28,000 increase in recourse liabilities for which the partners are liable. Ashley, a 50% partner, had an adjusted basis of $15,000 at the beginning of the year. What is Ashley's allowable loss and her adjusted basis in OSH at the end of the year?

+2
Answers (1)
  1. 14 February, 16:06
    0
    Ashley's Allowable loss $15000, Adjusted Basis $0

    Explanation:

    Ashley's Share of loss = $74000 x 50% i. e. $37000

    But since Ashley has adjusted basis of only $15000, therefore only $15000 loss can be adjusted and remaining will be adjusted in future years.

    Therefore, Ashley's Allowable loss $15000, Adjusted Basis $0
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “For the tax year, OSH partnership reported a $74,000 ordinary loss and a $28,000 increase in recourse liabilities for which the partners ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers