Question

What is Garrett's tax basis in his partnership interest?

1) 582,500
2) 130,000
3) 712,500
4) Cannot be determined

Answer 1

Garrett's tax basis in his partnership interest cannot be determined without additional information about his share of income, losses, distributions, and contributions/withdrawals.

Step-by-step explanation:

Garrett's tax basis in his partnership interest can be determined by adding his share of the partnership's income and subtracting his share of the partnership's losses and distributions.

The tax basis can also be adjusted for any additional contributions or withdrawals made by Garrett during the year.

In this case, without any additional information provided about Garrett's share of income, losses, distributions, or contributions/withdrawals, it cannot be determined what his tax basis in his partnership interest is.