# The CAT Partnership earned ordinary income of \$210,000 in 2014. The partnership has three equal​ partners, Carl​, Allen​, and Tom. Tom​, who is​ single, uses the standard​ deduction, and has other inc…

The CAT Partnership earned ordinary income of \$210,000 in 2014.
The partnership has three equal​ partners, Carl​, Allen​, and Tom.
Tom​, who is​ single, uses the standard​ deduction, and has other
income of \$13,000 ​(not connected with the​ partnership) in 2014.
He receives a \$35,000 distribution from the partnership during the
year. What is Tom's taxable income in 2014​?

 Adjusted gross income (AGI) Minus: Deductions from AGI: Tom's taxable income

## Solutions

##### Expert Solution

Solution:

Tom's taxable income 2014

Income from
partnership
=\$35,000

Other
income
=\$13,000

Ordinary income(\$210,000 * 1/3)    =\$70,000

income
=\$ 118,000

Minus: Deduction from AGI

standard deduction

6200 for 2014
\$6,200

personal income
\$4050
=(\$2,150)

Tom's taxable
income
=\$ 115,850