Questions from Federal Taxation

Q: Amy and Mitchell share equally in the profits, losses, and

Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the...

Q: Assume the same facts as in Problem 42. What income,

Assume the same facts as in Problem 42. What income, gains, losses, and deductions does Amy report on her income tax return? Based on the information provided, what other calculations is she required...

Q: Assume the same facts as in Problem 42. Prepare Amy’s tax

Assume the same facts as in Problem 42. Prepare Amy’s tax-basis capital account roll forward from the beginning to the end of the tax year. How does her capital account differ from her basis as calcul...

Q: Assume the same facts as in Problems 42 to 44. Prepare

Assume the same facts as in Problems 42 to 44. Prepare Amy’s Schedule K–1 as if you were the preparer of AM Products LLC’s tax return. Provide all information that Amy needs to the extent you can. For...

Q: The KL Partnership is owned equally by Kayla and Lisa. At

The KL Partnership is owned equally by Kayla and Lisa. At the beginning of the year, Kayla’s basis is $20,000 and Lisa’s basis is $16,000. Partnership debt did not change from the beginning to the end...

Q: Let’s look at both the facts and the spreadsheet from Problem 46

Let’s look at both the facts and the spreadsheet from Problem 46. Consider the results if the partnership’s revenues were $100,000 instead of $150,000. a. What happens if you update the revenues line...

Q: Barney, an individual, and Aldrin, Inc., a domestic

Barney, an individual, and Aldrin, Inc., a domestic C corporation, have decided to form BA LLC. The new LLC will produce a product that Barney recently developed and patented. Barney and Aldrin, Inc.,...

Q: Andy has operated his moving company, MoveOn, as a sole

Andy has operated his moving company, MoveOn, as a sole proprietorship for several years. In the current tax year, MoveOn placed into service $480,000 of property qualifying for immediate expensing un...

Q: Fredstone Consolidated, Inc., and Gradison Enterprises, Inc., are

Fredstone Consolidated, Inc., and Gradison Enterprises, Inc., are both real estate developers. Each entity owns a 50% general partner interest in Realty Partners, GP, a general partnership. Fredstone...

Q: TyroneCo, an S corporation with a positive E & P balance

TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $400,000 (of which $200,000 is PII). Expenditures directly connected to the production of the PII...