Essay
Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $14,275. The following items were included in her Schedule K-1 from the partnership for the year:
Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at-risk amount are equal and that she is a material participant in the partnership's activities. Further, assume that Ruby and her husband, Gerald, are not involved in any other trade or business and that they file a joint return every year.
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