Colbert was a passive investor in a mining partnership


Colbert was a passive investor in a mining partnership. Colbert died during 2016, and he willed the partnership interest to his daughter Noreen. The partnership had a basis of $12,000 and a fair market value of $14,000. Suspended losses relating to the property were $8,000. Which of the following statements is true?

a. Colbert's accountant may deduct $8,000 on his final tax return

b. Noreen's basis in the property is $12,000

c. Colbert's accountant may deduct $6,000 on his final tax return

d. Noreen's basis in the property is $4,000

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Accounting Basics: Colbert was a passive investor in a mining partnership
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