Questions from General Taxation

Q: How is depreciation calculated by the partnership when a partner contributes a

How is depreciation calculated by the partnership when a partner contributes a business asset?

Q: What is a wash sale, and why are losses from wash

What is a wash sale, and why are losses from wash sales disallowed?

Q: Are guaranteed payments treated as ordinary items or as separately stated items

Are guaranteed payments treated as ordinary items or as separately stated items?

Q: Discuss the characteristics of a like-kind asset. Must the

Discuss the characteristics of a like-kind asset. Must the asset received in a like-kind exchange be an exact duplicate of the asset given? Explain.

Q: When a passive activity is sold or otherwise disposed of, what

When a passive activity is sold or otherwise disposed of, what happens to any suspended losses from that activity?

Q: Denise contributes the following assets to a partnership in exchange for a

Denise contributes the following assets to a partnership in exchange for a 25% partnership interest: What is Denise’s beginning basis in her partnership interest?

Q: Dennis, Suzy, and Katherine form a partnership. Dennis and

Dennis, Suzy, and Katherine form a partnership. Dennis and Suzy give equipment and a building, respectively. Katherine agrees to perform all of the accounting and office work in exchange for a 10% int...

Q: Barry and Kurt are equal partners in the BK Partnership. Barry

Barry and Kurt are equal partners in the BK Partnership. Barry receives a guaranteed payment of $55,000. In addition to the guaranteed payment, Barry withdraws $10,000 from the partnership. The partne...

Q: How are the basis and holding period of the replacement property in

How are the basis and holding period of the replacement property in an involuntary conversion determined? Explain.

Q: Rhonda has a basis of $8,000 in a partnership

Rhonda has a basis of $8,000 in a partnership at the beginning of the year. She receives $12,000 in cash distributions, and her distributive share of income is $2,500. a. Is Rhonda required to recog...