Doug Purchases a 20% Interest in the Quix Partnership for $10,000

question 16

Essay

Doug purchases a 20% interest in the Quix Partnership for $10,000 on January 1, 2019, and begins to materially participate in the partnership's business. The Quix Partnership uses the calendar year as its tax year. At the time of the purchase, the Quix Partnership has $4,000 in liabilities, and Doug's share is 20%. What is Doug's basis in his partnership interest on January 1, 2010?

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Definitions:

Social Interest Index

A measure that assesses an individual's level of social concern and investment in the welfare of others.

Superiority Feelings

Emotions or attitudes stemming from a belief or perception of being better or above others in some way.

Life Satisfaction

A measure of how content an individual is with their life, considering various aspects such as personal achievements, relationships, and well-being.

Social Conflicts

Situations where groups or individuals have incompatible objectives, beliefs, or desires, leading to tensions or opposition.