86.Kathy is a partner in Wildwood Energy, a general partnership. In complete liquidation ofher interest in the partnership, she received a distribution consisting of the following assets:CashProperty 1Property 2Basis$5,000FMV$5,00015,00015,00020,00012,000Kathy's tax basis in her interest is $33,000. The partnership has no debt and no hot assets. Whatwill be Kathy's tax basis in Property I?a.$15,000b.$32,000c.$12,000d.$28,000None of these

Calculations: 1. Solve for the value of assets. Note: For property, use FMV. For cash, basis and…

Answered: 86. Kathy is a partner in Wildwood…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 39P

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Sally recently invested 10,000 (tax basis) in a limited partnership interest. Her at-risk amount is also 10,000. The partnership lost 6,000 this year, and Sallys share of the loss is 2,000. Sally has 40,000 in wage income and 2,000 of dividend income. In addition, Sallys share of income from a different limited partnership is 1,000. Sally does not meet the tests for material participation for either of her partnership interests. How much of Sallys 2,000 loss from the limited partnership can she deduct this year? a. 2,000 b. 0 c. 1,000 because she has 2,000 of dividend income d. 1,000 because she has 1,000 income from another limited partnership
could you please show me the steps for how to calculate Lucy's total gain and her current deductible loss.
1. what is katrina's basis in each of the assets? 2. what is katrina's gain or loss if she sells all of the assets the next day Katrina is a one-third partner in the KYR partnership (calendar year-end). Katrina decides she wants to exit the partnership and she receives the following assets in the liquidating distribution. Katrina's basis in her partnership interest is $280,000. Basis FMV Cash 60,000 60,000 Inventory 50,000 90,000 Machinery 50,000 45,000 Land 40,000 105,00 Totals 200,000 300,000
This answer is wrong . please give me the right answer.
. At the end of last year, Catherine, a 30% partner in the KLM partnership, had an outside basis of $50,000 in her partnership interest. She sold her partnership interest for $90,000. The partnership had $100,000 of unrealized receivables, and no debt. Calculate the amount and character of Catherine’s recognized gain or loss.
Goldfish partnership has 3 partners, Susan, Tina, and Vivian. Each partner has a basis in her partnership interest of $200,000. In the current year, Susan receives a liquidating distribution including $60,000 in cash and $120,000 in unrealized receivables. Susan takes a zero basis in the unrealized receivables. Will Susan recognize a capital loss on this liquidation and if so, what is the amount?
[The following information applies to the questions displayed below.] Bryce's basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Bryce receives the following assets: Cash FMV Tax Basis $8,000 $8,000 Land A $20,000 $45,000 Land B $20,000 $25,000 (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What is Bryce's basis in the distributed assets? Basis Land A Land B
[The following information applies to the questions displayed below.]Cliff’s basis in his Aero Partnership interest is $16,900. Cliff receives a distribution of $29,400 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet: Tax Basis FMV Assets Cash $ 29,400 $ 29,400 Investment 16,900 16,900 Land 4,400 40,800 Totals $ 50,700 $ 87,100 Liabilities and capital Capital—Chris $ 16,900 Capital—Cliff $ 16,900 Capital—Cooper $ 16,900 Totals $ 50,700 Problem 21-57 Part b (Algo) b. If Aero has a §754 election in place, what is the amount of the special basis adjustment? please prvide correct solution
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
Lucy sells her partnership interest, a passive activity, with an adjusted basis of $362,500 for $398,750. In addition, she has current and suspended losses of $54,375 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss.Her total gain is_______and her deductible loss is_______. b. What type of income can the deductible loss offset?Lucy's deductible loss is offset against________
Wylie is a general partner in a service-providing partnership and receives cash of $290,300 in liquidation of his partnership interest, in which he has a basis of $217,725. The partnership owns no hot assets and continues in existence. After following all of the classification requirements of § 736, $195,953 of this amount is classified as a property payment [§ 736(b)] and $94,347 is classified as a guaranteed payment [§ 736(a)] (assume that this payment is for unstated partnership goodwill). As a result of the liquidation proceeds, how much will Wylie recognize as a capital gain or loss, and how much will be ordinary income? How much can the partnership likely deduct? Wylie recognizes a $ likely deduct $ and he recognizes $ capital loss which is a guaranteed payment as ordinary income. The partnership can
2. During the year, Janice invested $2,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership income for the year was $6,000, and Janice received a $5,000 distribution from ABC limited partnership. During the year, Janice invested $5,500 (tax basis and at-risk basis) into DEF limited partnership (a passive investment). Her share of the limited partnership loss for the year was $6,500, and Janice received a $3,000 distribution from DEF limited partnership. What will be the net income/loss reported on Schedule 1 line 5 of a 2019 tax return? Will there be a carry forward?

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