Alex Is a Partner in a Calendar Year Partnership

question 6

Multiple Choice

Alex is a partner in a calendar year partnership. His partnership Schedule K-1 for the current tax year showed the following: 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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Definitions:

High-SES Families

Households with high socioeconomic status, typically characterized by higher income, education, and occupational status.

Levels of Achievement

Refers to the varying stages or degrees of success and proficiency individuals attain in specific areas or skills.

Mastery Orientation

An approach to learning and achievement that focuses on gaining new skills, improving competence, and understanding material, rather than a focus on outward success.

Fixed Mindsets

The belief that one's abilities, intelligence, and talents are static traits which cannot be significantly developed.