Questions from Federal Taxation

Q: At the beginning of the tax year, Melodie’s basis in the

At the beginning of the tax year, Melodie’s basis in the MIP LLC was $60,000, including her $40,000 share of the LLC’s liabilities. At the end of the year, MIP distributed to Melodie cash of $10,000 a...

Q: Last year, a shareholder transferred land (basis of $650

Last year, a shareholder transferred land (basis of $650,000, fair market value of $575,000) to Roadrunner Corporation in a § 351 transaction. This was the only property transferred to Roadrunner at t...

Q: In each of the following independent liquidating distributions in which the partnership

In each of the following independent liquidating distributions in which the partnership also liquidates, determine the amount and character of any gain or loss to be recognized by each partner and the...

Q: BDD Partnership is a service-oriented partnership that has three equal

BDD Partnership is a service-oriented partnership that has three equal general partners. One of them, Barry Evans, sells his interest to another partner, Dale Allen, on December 31 of the current tax...

Q: Emma and Laine form the equal EL Partnership. Emma contributes cash

Emma and Laine form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000. a. How much gain, if...

Q: Kenisha and Shawna form the equal KS LLC with a cash contribution

Kenisha and Shawna form the equal KS LLC with a cash contribution of $360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from Shawna. a. How m...

Q: Liz and John formed the equal LJ Partnership on January 1 of

Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contr...

Q: Mike and Melissa form the equal MM Partnership. Mike contributes cash

Mike and Melissa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $120,000), and Melissa contributes the assets of her sole pr...

Q: Assume the same facts as in Problem 30, except that Mike

Assume the same facts as in Problem 30, except that Mike sells his land to a third party for $100,000 and then contributes that cash to the partnership in addition to the original $40,000 contribution...

Q: From the perspective of the parent corporation, contrast the tax consequences

From the perspective of the parent corporation, contrast the tax consequences of a subsidiary liquidation under the general nonrecognition rules with a subsidiary liquidation that follows a § 338 elec...