South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Question
Chapter 20, Problem 5RP
a.
To determine
State the due date of the return.
b.
To determine
State whether a partnership can obtain an automatic extension for filing the form 1065.
c.
To determine
State whether a partnership need to include a schedule M-3 with its form 1065.
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Students have asked these similar questions
Select the correct answers for the following:
If ZZZ Corp., a domestic corporation registered and commenced operations in 2019, the MCIT shall apply when?
a. 2021
b. 2022
c. 2023
d. 2024
If Inday, a CPA, established a partnership with Nico, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is:
a. Taxable as a corporation
b. Is not allowed by law
c. A general professional partnership
d. Is exempted from taxation as the partners ae the ones liable for the tax
With the intention of limiting contact by taxpayers when dealing with the Bureau of Internal Revenue and at the same time save time and money, the Bureau allowed on-line filing of returns and other reports. This is in keeping with:
a. Fiscal adequacyb. Administrative Feasibilityc. Uniformity in taxationd. Theoretical justice
Professional tax collected by treasurers of LGUs is an example of:a. Privilege taxb. Direct taxc. Income taxd. Specific tax
When preparing Form 1065, U.S. Return of Partnership Income, what
entries must be made in order for the partners to claim the qualified
business income (QBI) deduction?
The appropriate adjustments must be made on the partnership's
balance sheet and reported correctly on page 5 of Form 1065.
Each partner's Schedule K-1 (Form 1065) should report the amount of
their QBI deduction in Part III, box 13, other deductions.
The information each partner will need to calculate their share of the
QBI deduction should be reported on their Schedule K-1 (Form 1065), box
20, other information, or an attached statement.
The QBI deduction will reduce the amount of the partnership's ordinary
business income and must be included in total deductions reported on page
1 of Form 1065.
Which statement is CORRECT?
Select one:
A. Partners' salary is an allowable expenses
B. Tax returns are due in April the following year
C. A partnership is considered as a separate entity from the partners
D. Unabsorbed capital allowance can be claimed against the future income of LLP
Chapter 20 Solutions
South-western Federal Taxation 2018: Individual Income Taxes
Ch. 20 - Prob. 1DQCh. 20 - LO.1 Sylvia and Trang want to enter into business...Ch. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - Prob. 6DQCh. 20 - LO.3, 4, 5 Contrast the income taxation of...Ch. 20 - LO.3, 8, 9 The taxpayer has generated excess...Ch. 20 - Prob. 9DQCh. 20 - Prob. 10DQ
Ch. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Prob. 14DQCh. 20 - Prob. 15DQCh. 20 - Prob. 16DQCh. 20 - Prob. 17DQCh. 20 - Prob. 18DQCh. 20 - Prob. 19DQCh. 20 - Prob. 20DQCh. 20 - Prob. 21DQCh. 20 - Prob. 22DQCh. 20 - Prob. 23DQCh. 20 - Blaine, Cassie, and Kirstin are equal partners in...Ch. 20 - Prob. 25DQCh. 20 - LO.3 Green Corporation, a calendar year taxpayer,...Ch. 20 - Prob. 27CECh. 20 - Banana Corporation is a May 31 fiscal year...Ch. 20 - LO.4 Gold and Silver are two unrelated calendar...Ch. 20 - Maroon Corporation is a calendar year taxpayer....Ch. 20 - Prob. 32CECh. 20 - Prob. 33CECh. 20 - Prob. 34CECh. 20 - Drab Corporation, a calendar year S corporation,...Ch. 20 - Kim is a 40% shareholder in Taupe Corporation, a...Ch. 20 - Prob. 37CECh. 20 - LO.3, 4, 5 Using the legend provided below,...Ch. 20 - LO.3 Garnet has the following capital asset...Ch. 20 - LO.3, 8 Citron, a calendar year taxpayer, began...Ch. 20 - LO.3 Taupe, a calendar year taxpayer, has a...Ch. 20 - LO.3, 8 Robin had the following capital...Ch. 20 - Prob. 43PCh. 20 - Prob. 44PCh. 20 - Prob. 45PCh. 20 - Prob. 46PCh. 20 - Prob. 47PCh. 20 - Prob. 48PCh. 20 - Prob. 49PCh. 20 - Prob. 50PCh. 20 - Prob. 51PCh. 20 - Prob. 52PCh. 20 - Prob. 53PCh. 20 - Prob. 54PCh. 20 - During the current year, Thrasher (a calendar...Ch. 20 - Prob. 56PCh. 20 - Jim Olsen owns all of the stock in Drake, a...Ch. 20 - Prob. 58PCh. 20 - Prob. 59PCh. 20 - LO.9 The Pheasant Partnership reported the...Ch. 20 - Prob. 61PCh. 20 - Prob. 62PCh. 20 - Prob. 63PCh. 20 - Prob. 1RPCh. 20 - Prob. 2RPCh. 20 - Prob. 3RPCh. 20 - Prob. 5RPCh. 20 - On January 1, year 5, Olinto Corp., an accrual...Ch. 20 - Prob. 2CPACh. 20 - Prob. 3CPACh. 20 - Prob. 4CPACh. 20 - Prob. 5CPACh. 20 - Prob. 6CPACh. 20 - Prob. 7CPA
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- 8. Which of the following is true regarding a general partnership? A.Partnership debt must be apportioned based on partnership percentages. B.The partnership must file a certificate of formation with its home state. C.Partners have unlimited liability for partnership debts. D.The partnership must remit federal income taxes on behalf of the partners 11. Which of the following statements is correct regarding a limited liability company's operating agreement? A.It must be filed with a central state agency. B.It must contain the name and address of the limited liability company's registered agent. C.It contains provisions for allocating profits and losses to the owners. D.It allows a limited liability company to legally transact businessarrow_forwardAll of the following regarding Schedule M-2 (Form 1065) are correct EXCEPT: When completing Schedule M-2, determine if the partnership uses financial accounting or tax accounting. Schedule M-2 tracks the partners' outside basis in the partnership. Schedule M-2 tracks the partners' capital accounts. Schedule M-2 includes capital contributed by the partners during the year.arrow_forwardWhich of the following statements regarding partnerships is true? a. Partnership income is taxed in the partnership. b. Partnership losses cannot be offset against the partners other income c. Partnership income is included in a partners income in the year of disbursement. d. Partnerships may earn business income, property income, and capital gains.arrow_forward
- Please don't give solution in image formatarrow_forwardFor partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and: Guaranteed payments made to the partners in lieu of salary. Recapture of investment credit. The unadjusted basis of qualified property. The adjusted basis of qualified property.arrow_forwardAt the beginning of the current year, Cameron and Harold formed the CH Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, Cameron transferred property having a $35,000 FMV, a $32,000 adjusted basis, and subject to a $5,000 liability, which the partnership assumed. Harold contributed $60,000 cash to the partnership. The partnership also borrowed $35,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $19,000 of net ordinary income and reinvested this amount in new property. Read the requirements.arrow_forward
- When partnerships file taxes and deduct charitable contributions it will be entered in their form k-1 line 13a contributions but do they need to file a schedule A as well?arrow_forwardX invited Y to a partnership interest in his business. Accounts in the ledger of X on January 1, 2020, before the admission of Y, show the following: Cash-P208,000; Accounts receivable-P460,000; Inventory P1,440,000; Accounts payable-P496,000. It is agreed that for the purpose of establishing the interest of X, the following adjustments shall be made: a) an allowance for bad debts of 8% based on the outstanding accounts receivable is to be established. b) the inventory is to be valued at P1,000,000 c) Prepaid expenses of P72,000 and accrued expenses of P32,000 are to recognized. Y is to invest sufficient cash for a one-third interest in the partnership. How much is the adjusted capital of X?arrow_forwardAt the beginning of the current year, David and Garrett formed the DG Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, David transferred property having a $40,000 FMV, a $20,000 adjusted basis, and subject to a $15,000 liability, which the partnership assumed. Garrett contributed $70,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $25,000 of net ordinary income and reinvested this amount in new property.arrow_forward
- Which one of the following statements regarding partnership taxation is incorrect? a.Partnership income is comprised of ordinary partnership income or loss and separately stated items. b.A partnership is required to file a return with the IRS. c.A partner's profit-sharing percentage may differ from the partner's loss-sharing percentage. d.A partnership is a tax-paying entity for Federal income tax purposes.arrow_forwardWhich of the following statements about partnerships is true? Group of answer choices a)Partnerships must file their tax returns on a calendar year basis. b)No gain or loss is ever recognized in transactions between partners and a partnership. c)Gain is never recognized by a partner on a contribution of property to a partnership. d)A partner's initial basis in a partnership interest is equal to the basis of the property transferred (plus cash contributed) to the partnership, adjusted for any gain recognized on the transfer and reduced for liabilities assumed by the other partners. e)The partnership's basis in property contributed by a partner is equal to the fair market value of the property on the date of the transfer.arrow_forwardWhich statement is true with respect to the tax treatment of a partnership __________? A partnership files an annual information return and the income and expenses associated with the business are reported on the Partners' individual returns. A partnership is required to pay tax annually on its taxable business income A partnership is required to pay tax on gains from the sale of partnership owned assets None of the abovearrow_forward
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