At the end of year 1, Tony had a tax basis of $40,000 in Tall Ladders, Limited Partnership. Tony has a 20 percent profits interest in Tall Ladders. For year 2, Tall Ladders will pay Tony a $10,000 guaranteed payment for extra services he provides to the partnership. Given the following Income Statement and Balance Sheet from Tall Ladders, what is Tony's adjusted tax basis at the end of year 2?
Definitions:
Property Tax
A levy on property that the owner is required to pay, usually based on the value of the property.
Benjamin Franklin
An American polymath who was a founding father of the United States.
Certain
Completely confident or sure about a situation or outcome.
Taxes
Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
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