How much net reportable income must dylan recognize

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As of January 1 of last year, Dylan's outside basis and at-risk amount for his 40% interest in the DEF Partnership were $60,000. Dylan and the partnership use the calendar year for tax purposes. The partnership incurred an operating loss of $200,000 for last year and a profit of $120,000 for the current year. Dylan is a material participant in the partnership.

a. How much loss, if any, may Dylan recognize for last year?
b. How much net reportable income must Dylan recognize for the current year?
c. What is Dylan's basis in the partnership as of December 31 of last year?
d. What is Dylan's basis in the partnership as of December 31 of the current year?
e. What year-end tax planning would you suggest to ensure that Dylan can deduct his share of partnership losses?

Reference no: EM13340826

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