Instructions: Identify the tax issue(s) suggested by the following situation and state each issue in the form of a question. List as many tax research issues as you can to determine the tax consequences of the following transaction.
Do NOT attempt to answer any of the questions you raise.
Jorge, a limited partner in the EFJ Partnership, has a 20% interest in partnership capital, profits, and losses. His basis in the partnership interest is $20,000 before accounting for events from the current year. In December of the current year, the EFJ Partnership repaid a $100,000 nonrecourse liability. The partnership earned $20,000 of ordinary income this year. What tax issues should Jorge consider with respect to reporting the results of this year's activities for the EFJ Partnership on his personal return?