For purposes of the election to defer Federal estate tax payments relative to an interest in a closely held business, an interest in a closely held business does not include: Oa. A 16% intemst in a partnership that has 36 partners Ob. A 10% interest in a partnership that has 48 partners Oc. A 22% ntemt in a partnership that has 50 parthers Od. A sole preprietorship

For purposes of the election to defer Federal estate tax payments relative to an interest in a closely held business, an interest in a closely held business does not include: Oa. A 16% intemst in a partnership that has 36 partners Ob. A 10% interest in a partnership that has 48 partners Oc. A 22% ntemt in a partnership that has 50 parthers Od. A sole preprietorship

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kathy is a 25 percent partner in the KDP Partnership and receives a parcel of land with a fair value of $160,000 (inside basis of $120,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $210,000. KDP currently has a §754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution? Multiple Choice $0. $40,000 positive basis adjustment. $90,000 positive basis adjustment. $90,000 negative basis adjustment.
Cosmo contributed land with a fair market value of $362,500 and a tax basis of $102,000 to the Y Mountain Partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by a $142,000 nonrecourse liability. Other than this nonrecourse liability, Y Mountain Partnership does not have any liability. b. What is Cosmo's tax basis in his partnership interest? Please only typing answer
1. A partnership has four equal partners who share profits and losses in accordance with their respective interests. It has $400,000 in taxable income but doesn't distribute any cash to the partners. a. What amount of income will the partnership report on its tax return? None. There is no business income tax on a partnership. b. What amount of the partnership's taxable income will be subject to tax at the partnership level? c. Will each partner recognize taxable income from their interest in the partnership? If so, how much? d. If ABC was a corporation with four equal owners, how would this change your answers in parts (a)- (c)?
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MN.52. 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?
Zoey contributed land with a tax basis of $45,000 and a fair market value of $100,000 in exchange for a 20% percent interest in the new formed ZAT Partnership. All other partners contributed cash and ZAT partnership has no liabilities. How much income must Zoey recognize as a result of the transaction? Question 4 options: a) $0. b) $20,000. c) $45,000. d) $55,000. e) $100,000.
The XYZ Partnership is being formed by three partners. Their ownership in the partnership, and tax year ends are listed below. Using the least aggregate deferral method in the table below, determine which tax year the partnership can elect. June 30 Sept 30 Dec 31 deferral deferral deferral (# Total Total (# months) months) (# months) Total June X 30% 0 0 30 6 1.8 Sept Y 30% 3 0.9 9 2.7 30 Dec Z 40% 6 2.4 31 Total 3.3 0 0 4.5 Which tax year can the partnership elect without IRS permission? 6/30 or 9/30 or 12/31?