Questions from General Taxation

Q: Continue with the same facts of Problem 16. Consider Amy’s tax

Continue with the same facts of Problem 16. Consider Amy’s tax-basis capital account. a. What is Amy’s capital account at the beginning of the year? b. What is Amy’s capital account at the end of the...

Q: Cerulean, Inc., Coral, Inc., and Crimson, Inc

Cerulean, Inc., Coral, Inc., and Crimson, Inc., form the Three Cs Partnership on January 1 of the current year. Cerulean is a 50% partner, and Crimson and Coral are 25% partners. For reporting purpose...

Q: The JM Partnership was formed to acquire land and subdivide it

The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2015, Jessica contributed land valued at $600,000 to the partnership in exchange for a 50% inte...

Q: Lee, Brad, and Rick form the LBR Partnership on January

Lee, Brad, and Rick form the LBR Partnership on January 1 of the current year. In return for a 25% interest, Lee transfers property (basis of $15,000, fair market value of $17,500) subject to a nonrec...

Q: Assume the same facts as in Problem 21, except that the

Assume the same facts as in Problem 21, except that the property contributed by Lee has a fair market value of $27,500 and is subject to a nonrecourse mortgage of $20,000. a. What is Lee’s basis in h...

Q: Emily spent $135,000 to rehabilitate a building (adjusted

Emily spent $135,000 to rehabilitate a building (adjusted basis of $90,000) that originally had been placed in service in 1935. a. What is Emily’s rehabilitation expenditures tax credit? b. What would...

Q: The BCD Partnership plans to distribute cash of $20,000

The BCD Partnership plans to distribute cash of $20,000 to partner Barb at the end of the tax year. The partnership reported a loss for the year, and Barb’s share of the loss is $10,000. Barb holds a...

Q: The Pelican Partnership was formed on August 1 of the current

The Pelican Partnership was formed on August 1 of the current year and admitted Morlan and Merriman as equal partners on that date. The partners both contributed $300,000 of cash to establish a child...

Q: Four GRRLs Partnership is owned by four unrelated friends. Lacy holds

Four GRRLs Partnership is owned by four unrelated friends. Lacy holds a 40% interest; each of the others owns 20%. Lacy sells investment property to the partnership for its fair market value of $200,0...

Q: Burgundy, Inc., and Violet Gomez are equal partners in the

Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed pa...