Imelda provided accounting and tax services to Acacia, a par…

Imelda provided accounting and tax services to Acacia, a partnership. As compensation for her services, Imelda received a 10 percent interest in the partnership. Acacia has $20,000 of nonrecourse debt and no recourse debt. The current fair value of Acacia’s capital is $60,000.   [question 2 of 2] If Imelda receives a 10 percent capital and profits interest, how much income must she report and what is her basis in the partnership interest?

Pablo had a beginning basis of $50,000 in a limited partners…

Pablo had a beginning basis of $50,000 in a limited partnership interest. During the year, the partnership reported the following items on Pablo’s Form 1065 Schedule K-1:   Sales revenue – $70,000 Cost of goods sold – ($85,000) Long-term capital gain – $3,000 Qualified dividends – $2,000 Nondeductible fines and penalties – ($500) Reduction in Pablo’s share of partnership debt – ($4,000) Cash contribution to the partnership – $10,000   What is Pablo’s ending basis in his partnership interest?