G and H Are Individual Partners in GH Partnership and Share

question 41

Multiple Choice

G and H are individual partners in GH Partnership and share equally in its profits and losses.G had a basis of $5,000 in the partnership, before considering the $14,000 ordinary loss reported by GH for 2011.In 2012, the partnership reports a $6,000 ordinary gain on Form 1065.What income or loss should G properly report on his 2012 individual return? Assume that there are no other transactions that affect G's basis in the partnership for 2011 and 2012.

• A)$0
• B)$2,000 loss
• C)$1,000 income
• D)$2,000 income
• E)$3,000 income

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Definitions:

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