Jada Corp owns a 20 percent interest in JV, LLC. Jada’s taxable year ends September 30th. The remaining 80 percent of JV is owned by 20 different partners, each of whom owns a 4 percent interest. Of those 20 partners, 10 have a taxable year that ends December 31. The other 10 have a taxable year that ends July 31st. What is JV, LLC’s required taxable year?

Jada Corp owns a 20 percent interest in JV, LLC. Jada’s taxable year ends September 30th. The remaining 80 percent of JV is owned by 20 different partners, each of whom owns a 4 percent interest. Of those 20 partners, 10 have a taxable year that ends December 31. The other 10 have a taxable year that ends July 31st. What is JV, LLC’s required taxable year?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 32P

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Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2020 and $90,000 for 2021. a. What is the amount of income from the LLC that Burgundy must report for its tax year ending April 30, 2021? b. What is the amount of income from the LLC that Violet must report for her tax year ending December 31, 2021?
Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2020 and $90,000 for 2021. a. Now assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2021, and the LLC’s taxable income for 2020 and 2021 (after deducting Burgundy’s guaranteed payment) is the same (i.e., $80,000 and $90,000, respectively). What is the amount of income from the LLC that Burgundy, Inc., must report for its tax year ending April 30, 2021?
Check my work Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy) is $80,000 for 2020 and $90,000 for 2021. How much income from BV must Burgundy report for its tax year ending April 30, 2021? Burgundy receives a guaranteed payment of $100,000 plus 50% of $80,000 = $40,000 Burgundy’s total income is $140,000 How much income from BV must Violet report for her tax year ending December 31, 2021? Violet receives 50% of $90,000, BV’s taxable income after guaranteed payment to Burgundy, 50% of $90,000= $45,000
At the beginning of 2022, Ms. Pope purchased a 20 percent interest in PPY Partnership for $22,000. Ms. Pope’s Schedule K-1 reported that her share of PPY’s debt at year-end was $21,000, and her share of ordinary loss was $38,600. On January 1, 2023, Ms. Pope sold her interest to another partner for $2,900 cash. Required: How much of her share of PPY’s loss can Ms. Pope deduct on her 2022 return? Compute Ms. Pope’s recognized gain on sale of her PPY interest. How would your answers to parts a and b change if PPY were an S corporation instead of a partnership?
Moonboots Partnership had a net income of P8,000 for the month ended September 30, 2021. Sunshine purchased an interest in moonboots Partnership of Liz and Dick by paying Liz P32,000 for half of her capital and half of her 50% profit-sharing interest on October 1, 2021. At this time, Liz’s capital balance was P24,000 and Dick’s capital balance was P56,000. Sunshine should receive a credit to her capital balance of:
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $174,500 at the end of the year, after accounting for the calendar year LLC's current operations. On that date, the LLC distributes $191,950 cash to Lola in a proportionate current distribution. What is the amount of any gain or loss Lola recognizes as a result of this distribution? What is her basis in the LLC interest? if an amount is zero, enter "0". She recognizes a $fill in the blank ____________ from this distribution. Her basis is reduced to $fill in the blank _______________ ?
18. Mr. X is a partner of XY Partnership, a business partnership, and owns 50% interest. The gross sales of the partnership amounted to P25,000,000 for the taxable year 2021. The recorded cost of sales and operating expenses were P12,500,000 and P5,280,000, respectively. How much is the creditable withholding tax?
Kerry is a partner in the Kerry, Davis, Smith & Jones Partnership. Kerry owned 25% from January 1, 2021, to June 30, 2021, when she bought Jones’s 25% interest. She owned 50% for the rest of the year. The partnership had ordinary income of $175,200 and $20,000 in long-term capital gains. Required: Barring any special allocations in a partnership agreement, what is Kerry’s share of income? Note: Do not round any division. Round other computations to the nearest whole dollar value.
6. On Jan. 1, 2019, Anatalio, Yecyec, Guzon, and Calimpusan formed Butuan Trading Co., a partnership, with contributions as follows: Anatalio, P50,000; Yecyec, P25,000; Guzon, P25,000 and Calimpusan, P20,000. The partnership contract provided that each partner shall receive a 5% interest on contributed capital, and that Anatalio and Yecyec shall receive salaries of P5,000 and P3,000, respectively. The contract also provided that Guzon shall receive a minimum of P2,500 per annum, and Calimpusan a minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of remaining profits. The balance of the profits shall be distributed to Anatalio, Yecyec, Guzon, and Calimpusan in a ratio 3:3:2:2. What amount must be earned by the partnership, before any charge for interest and salaries, so that Anatalio may receive an aggregate of P12,500 including interest, salary and share of profits? a. P32,333 b. P30,000 c. P30,667 d. P16,667
Alaa, Sami and Ray, the partners in ASR Company, have capital balances on January 1, 2020 of s110,000, S77,000 and S33,000 respectively. The net income for the year is $25,000. The partnership income-sharing agreement indicates: 1. Annual salaries of S7,000 for Alaa, $5,500 for Sami, and $4,500 for Ray. 2. Interest of 7% on beginning capital balances for all partners. 3. Remaining income or loss to be shared based on the partner's beginning capital ratios
On January 1, 2021, Bob purchased a 50 percent interest in ABC Partnership (ABC) from Tim by paying Tim $150,000 in cash. During 2021, ABC had ordinary income totaling $180,000 and paid a penalty to the state of Virginia in the amount of $1,000. ABC, which does not have any liabilities, made a distribution to its partners on December 31, 2021 in the total amount of $50,000. The ABC partnership agreement requires all income, gains, and losses to be allocated between Bob and his partner based on ownership interest or 50/50. Required: 1. Calculate Bob's tax basis in ABC partnership interest on December 31, 2021. 2. If Bob sold his entire interest to Jack on January 1, 2022 for $200,000, calculate Bob's gain or loss on the sale assuming that ABC at the time of the sale did not have any "Hot Assets".