Questions from General Taxation

Q: Define precontribution gain. What causes a partner to recognize it?

Define precontribution gain. What causes a partner to recognize it?

Q: What is the concept of basis? In your discussion, differentiate

What is the concept of basis? In your discussion, differentiate between outside basis and inside basis.

Q: When a partnership receives an asset from a partner, does the

When a partnership receives an asset from a partner, does the partnership ever recognize a gain? What is the basis of the asset in the hands of the partnership after contribution?

Q: Discuss the concept of steps into the shoes. Does this concept

Discuss the concept of steps into the shoes. Does this concept pertain to the partnership, the partners, or both?

Q: Why would smaller partnerships (and other businesses for that matter)

Why would smaller partnerships (and other businesses for that matter) use only the tax basis of accounting, which does not follow GAAP?

Q: When must Form 6198 and Form 8582 be filed? Does the

When must Form 6198 and Form 8582 be filed? Does the taxpayer file more than one Form 6198 or Form 8582?

Q: What AMT adjustment items are likely to affect all taxpayers who itemize

What AMT adjustment items are likely to affect all taxpayers who itemize their deductions? Give examples.

Q: When faced with an involuntary conversion, does the taxpayer have an

When faced with an involuntary conversion, does the taxpayer have an unlimited amount of time to replace the converted property? Explain.

Q: If a partner owns a 20% interest, does that necessarily

If a partner owns a 20% interest, does that necessarily mean that he or she will receive 20% of the net income from the partnership? Explain.

Q: Is partnership income considered self-employment income? If so,

Is partnership income considered self-employment income? If so, how is it calculated?