Questions from Federal Taxation

Q: George, a limited partner in the EFG Partnership, has a

George, a limited partner in the EFG Partnership, has a 20% interest in partnership capital, profits, and losses. His basis in the partnership interest is $15,000 before accounting for events of the c...

Q: Katie works 40 hours a week as a clerk in the mall

Katie works 40 hours a week as a clerk in the mall and earns $20,000. In addition, she works five hours each week in the JKL Partnership’s office. Katie, a 10% limited partner in the JKL Partnership,...

Q: Tom and Vicki are married and file a joint income tax return

Tom and Vicki are married and file a joint income tax return. They each purchase 50% of the stock in Guest Corporation from Al for $75,000. Tom is employed full-time by Guest and earns $100,000 in ann...

Q: Daniel has no family to inherit his 80% capital and profits

Daniel has no family to inherit his 80% capital and profits interest in the CD Partnership. To ensure the continuation of the business, he gives a 20% capital and profits interest in the partnership t...

Q: Bob and Kate form the BK Partnership, a general partnership,

Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjusted basis to the partnership along with a $60,...

Q: Steve wishes to pass his business on to his children, Tracy

Steve wishes to pass his business on to his children, Tracy and Vicki, and gives each daughter a 20% partnership interest to begin getting them involved. Steve retains the remaining 60% interest. Neit...

Q: Suzanne and Bob form the SB General Partnership as equal partners.

Suzanne and Bob form the SB General Partnership as equal partners. They make the following contributions: The SB Partnership assumes the $80,000 recourse mortgage on the building that Bob contributes...

Q: At the beginning of the current year, Able and Baker formed

At the beginning of the current year, Able and Baker formed the AB Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% inter...

Q: On May 31, six brothers decided to form the Grimm Brothers

On May 31, six brothers decided to form the Grimm Brothers Partnership to publish and print children’s stories. The contributions of the brothers and their partnership interests are...

Q: On January 1, Julie, Kay, and Susan formed a

On January 1, Julie, Kay, and Susan formed a partnership. The contributions of the three individuals are listed below. Julie received a 30% partnership interest, Kay received a 60% partnership interes...