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?

---

Definitions:

Performance-Related Information

Data or details that pertain to the performance of an individual, often used for feedback or improvement purposes.

Job Analysis

A systematic process of collecting and analyzing information about a job's tasks, responsibilities, and the knowledge, skills, and abilities required to perform it.

Work Environment

The setting, conditions, and culture that employees experience in their workplace, which can affect their performance and satisfaction.

New Technology

The latest advancements in tools, equipment, or procedures that improve efficiency, productivity, or user experiences.