Charles Jordan files his income tax return on a calendar-year basis. He is a principal partner in a partnership using a tax year ending June 30. Jordan's share of the partnership's ordinary income was $24,000 for the fiscal year ending June 30 of last year and $72,000 for the fiscal year ending June 30 of the current year. Assume the partnership earned its income evenly throughout the year. How
much should Jordan report on his Form 1040 for last year as his share of the partnership's ordinary income?
What will be an ideal response?
$24,000 of partnership ordinary income from the partnership return for the year ending June 30 of last year. None of the income for the July 1 - December 31 portion of the partnership return for the year ending June 30 of this year is included in the partner's return for last year.
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