Dean is a 25% partner in Target Partnership. Dean’s tax basis in Target on January 1, 2007, was $20,000. At the end of 2007, Dean received a nonliquidating cash distribution of $8,000 from Target. Target’s 2007 accounts recorded the following items:
|
Municipal bond interest income |
$12,000 |
|
Ordinary income |
40,000 |
What was Dean’s tax basis in Target on December 31, 2007?
- $15,000
- $23,000
- $25,000
- $30,000