Questions from Federal Taxation

Q: The JKL Partnership has three equal partners, Jingjing, Kevin,

The JKL Partnership has three equal partners, Jingjing, Kevin, and Latisha. Latisha sells her interest to Larry for $690,000. The partnership does not have a Sec. 754 election in effect. Just before t...

Q: ABC Company, a limited liability company (LLC) organized in

ABC Company, a limited liability company (LLC) organized in the state of Florida, reports using a calendar tax year­end. The LLC chooses to be taxed as a partnership. Alex, Bob, and Carrie (all calend...

Q: Arnie, Becky, and Clay are equal partners in the ABC

Arnie, Becky, and Clay are equal partners in the ABC General Partnership. The three individuals each have a $120,000 tax basis in their partnership interest. For business reasons, the partnership need...

Q: Della retires from the BCD General Partnership when her basis in her

Della retires from the BCD General Partnership when her basis in her partnership interest is $70,000 including her $10,000 share of liabilities. The partnership is in the business of providing house c...

Q: Pedro owns a 60% interest in the PD General Partnership having

Pedro owns a 60% interest in the PD General Partnership having a $40,000 basis and $200,000 FMV. His share of partnership liabilities is $100,000. Because he is nearing retirement age, he has decided...

Q: Frank, Greta, and Helen each have a one­third

Frank, Greta, and Helen each have a one­third interest in the FGH Partnership. On December 31, 2016, the partnership reported the following balance sheet: The partnership placed Asset 1 (s...

Q: Consider the following balance sheet for DEF Partnership: /

Consider the following balance sheet for DEF Partnership: Suppose Daniel wishes to exit the partnership completely. After discussions with Edward and Frances, the partners agree to let Daniel choose...

Q: Debra has operated a family counseling practice for a number of years

Debra has operated a family counseling practice for a number of years as a sole proprietor. She owns the condominium office space that she occupies in addition to her professional library and office f...

Q: Beth died on May 3, 2017. Her executor elected date

Beth died on May 3, 2017. Her executor elected date-of-death valuation. Beth’s gross estate included, among other properties, the items listed below. What is the estate tax value of each item? a. 4,0...

Q: Maria purchased an interest in a real estate tax shelter many years

Maria purchased an interest in a real estate tax shelter many years ago and deducted losses from its operation for several years. The real property owned by the tax shelter when Maria made her investm...