What is adjusted basis in her partnership interest

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Reference no: EM131202336

At the beginning of 2015, Margaret’s adjusted basis in her 50 percent interest in MP Partnership, a calendar year general partnership, was $10,000. During 2015, Margaret did not make any additional contributions to MP Partnership, and Margaret’s share of MP Partnership liabilities did not change. During 2015, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2015: Separately stated taxable income $30,000 Tax-exempt interest $10,000 Capital loss ($20,000) What is Margaret’s adjusted basis in her partnership interest in MP Partnership at the end of 2015?

a. 0

b. $10,000

c. $15,000

d. $25,000

Reference no: EM131202336

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