McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 52

{Research} Juan Diego began the year with a tax basis in his partnership interest of $50,000.During the year, he was allocated $20,000 of partnership ordinary business income, $70,000 of §1231 losses, $30,000 of short-term capital losses, and received a cash distribution of $50,000.a.What items related to these allocations does Juan Diego actually report on his tax return for the year? { Hint: See Reg.§1.04-1(d)(2) and Rev.Rul.66-94.
b.If any deductions or losses are limited, what are the carryover amounts and what is their character? { Hint: See Reg.§1.04-1(d).