Alex Is a Partner in a Calendar Year Partnership $\begin{array}{llr} \text {Ordinary business income } &\$41,000\\ \text { short-term capital loss} &1,500\\\end{array}$

question 25

Multiple Choice

Alex is a partner in a calendar year partnership. His partnership Schedule K-1 for the current tax year showed the following: $\begin{array}{llr} \text {Ordinary business income } &\$41,000\\ \text { short-term capital loss} &1,500\\\end{array}$
Alex has a $7,000 loss carryforward from the partnership last year, which he could not deduct because of the basis limitation. What is his tax basis in his partnership interest at the end of the current tax year?

• A) $41,000
• B) $32,500
• C) $39,500
• D) $34,000

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