Questions from Federal Taxation

Q: Assume the same four independent distributions as in Problem C:10

Assume the same four independent distributions as in Problem C:10­25. Fill in the blanks in that problem assuming the only change in the facts is that the distributions are now liquidating...

Q: Marinda is a one­third partner in the MWH Partnership before

Marinda is a one­third partner in the MWH Partnership before she receives $100,000 cash as a liquidating distribution. Immediately before Marinda receives the distribution, the partnership...

Q: The AB Partnership pays its only liability (a $100,

The AB Partnership pays its only liability (a $100,000 mortgage) on April 1 of the current year and terminates that same day. Alison and Bob were equal partners in the partnership but have partnership...

Q: The LQD Partnership distributes the following property to Larry in a distribution

The LQD Partnership distributes the following property to Larry in a distribution that liquidates Larry’s interest in the partnership. Assume that no Sec. 754 election is in effect....

Q: Pat, Kelly, and Yvette are equal partners in the PKY

Pat, Kelly, and Yvette are equal partners in the PKY Partnership before Kelly sells her partnership interest. On January 1 of the current year, Kelly’s basis in her partnership inter...

Q: Clay owned 60% of the CAP Partnership and sold one-

Clay owned 60% of the CAP Partnership and sold one-half of his interest (30%) to Steve for $75,000 cash. Before the sale, Clay’s basis in his entire partnership interest was $168,000...

Q: Can a partner recognize both a gain and a loss on the

Can a partner recognize both a gain and a loss on the sale of a partnership interest? If so, under what conditions?

Q: Alice, Bob, and Charles are one­third partners in

Alice, Bob, and Charles are one­third partners in the ABC Partnership. The partners originally formed the partnership with cash contributions, so no partner has precontribution gains or los...

Q: Suzanne retires from the BRS Partnership when the basis of her one

Suzanne retires from the BRS Partnership when the basis of her one third interest is $105,000, which includes her share of liabilities. At the time of her retirement, the partnership had the following...

Q: Brian owns 40% of the ABC Partnership before his retirement on

Brian owns 40% of the ABC Partnership before his retirement on April 15 of the current year. On that date, his basis in the partnership interest is $40,000 including his share of liabilities. The part...