Bart contributes $100,000 to the Tuna Partnership for a 40% interest.During the first year of operations,Tuna has a profit of $20,000.At the end of the first year,Tuna has outstanding loans from the following banks.

What is Bart's at-risk basis in Tuna at the end of the first year?
A)$100,000.
B)$108,000.
C)$112,000.
D)$124,000.
E)None of the above.

Question

Bart contributes $100,000 to the Tuna Partnership for a 40% interest.During the first year of operations,Tuna has a profit of $20,000.At the end of the first year,Tuna has outstanding loans from the following banks.

What is Bart's at-risk basis in Tuna at the end of the first year?

What is Bart's at-risk basis in Tuna at the end of the first year?
A)$100,000. 
B)$108,000. 
C)$112,000. 
D)$124,000. 
E)None of the above.

Quizplus · Accepted Answer

Bart's at-risk basis at the end of the first year is: 11ea7f05_2e9b_d59a_92e1_bff05d4d9afd_TB4123_00 Bart's share of the nonrecourse debt of $12,000 ($30,000 F1F1F1S1F1F1F10 40%)is not included in his at-risk basis.

Bart Contributes $100,000 to the Tuna Partnership for a 40