Questions from Federal Taxation

Q: Diane and Ed have equal capital and profits interests in the DE

Diane and Ed have equal capital and profits interests in the DE Partnership, and they share the economic risk of loss from recourse liabilities according to their partnership interests. In addition, D...

Q: What is Kelly’s basis for her partnership interest in each of the

What is Kelly’s basis for her partnership interest in each of the following independent situations? The partners share the economic risk of loss from recourse liabilities according to their partnershi...

Q: Yong received a 40% general partnership interest in the XYZ Partnership

Yong received a 40% general partnership interest in the XYZ Partnership in each of the independent situations below. In each situation, assume the general partners share the economic risk of loss rela...

Q: Tina purchases an interest in the TP Partnership on January 1 of

Tina purchases an interest in the TP Partnership on January 1 of the current year for $50,000. The partnership uses the calendar year as its tax year and has $200,000 in recourse liabilities when Tina...

Q: Debate the following proposition: All corporate formation transactions should be taxable

Debate the following proposition: All corporate formation transactions should be taxable events.

Q: Lois, who is single, transfers property with an $80

Lois, who is single, transfers property with an $80,000 basis and a $120,000 FMV to Water Corporation in exchange for all 100 shares of Water stock. The shares qualify as Sec. 1244 stock. Two years la...

Q: The KC Partnership is a general partnership that manufactures widgets. The

The KC Partnership is a general partnership that manufactures widgets. The partnership uses a calendar year as its tax year and has two equal partners, Kerry and City Corporation, a widely held corpor...

Q: Mary and Gary are partners in the MG Partnership. Mary owns

Mary and Gary are partners in the MG Partnership. Mary owns a 40% capital, profits, and loss interest. Gary owns the remaining interest. Both materially participate in partnership activities. At the b...

Q: Eve and Tom own 40% and 60%, respectively, of

Eve and Tom own 40% and 60%, respectively, of the ET Partnership, which manufactures clocks. The partnership is a limited partnership, and Eve is the only general partner. She works full-time in the b...

Q: Kate, Chad, and Stan are partners in the KCS Partnership

Kate, Chad, and Stan are partners in the KCS Partnership, which operates a manufacturing business. The partners formed the partnership ten years ago with Kate and Chad each as general partners having...