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  1. business
  2. accounting
  3. on part a: o there are 2 items that increase the

On part a: o There are 2 items that increase the basis. That...

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Accounting

On part a:
o There are 2 items that increase the basis. That leads to basis before distribution
o Then report the cash distribution, and gets to the Basis before Loss Allocations
o Determine the ordinary loss, and allocate it to the two partners
o This gets you the partners ending tax basis
On part b, apply the first two limitation rules
On part c, he is a limited partner, which leads to a passive activity loss. This should guide you
on how to allocate the ordinary business loss for each partner; the answer is not the same for
two partners
On part d, you have to report (do all of this in excel)
o Page 1 of form 1065
o Page 4 of form 1065
o K-1 for Francesa and a separate K-1 for Amir. You need numbers in the following lines
Part II, L, two items
Part III, line 1,8,10,14,18,19,20(QBI)
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