Steve's Basis in His SAW Partnership Interest Is $200,000 at the Beginning

Steve's basis in his SAW Partnership interest is $200,000 at the beginning of the tax year, including all adjustments.
His allocable share of partnership items are as follows: ($120,000) of ordinary loss, $6,000 tax-exempt interest income, and a $14,000 long-term capital gain. In addition, the LLC distributed $20,000 of cash to Steve during the year. During the year, Steve's share of partnership debt increased by $10,000. Steve's ending basis in his LLC interest is $80,000.

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