Flow-Through Income Items Practice Test

Aston and Becker are equal partners in AB Partnership. In the tax year, the ordinary income of the partnership is \$20,000, and the partnership has a long-term capital gain of \$12,000. Aston's basis in AB was \$40,000, and he received distributions of \$5,000 during the year. What is Aston's share of AB's ordinary income?

Which of the following is both an item that is an allowable tax deduction to the partnership, reported separately on the individual partner’s Schedule K-1, and then included on the partner’s individual tax return?

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