Questions from General Taxation

Q: Discuss the concepts of ordinary income and separately stated items concerning partnerships

Discuss the concepts of ordinary income and separately stated items concerning partnerships. When must a partnership item of income or loss be separately stated and why?

Q: Describe the rules concerning the basis of property distributed to a partner

Describe the rules concerning the basis of property distributed to a partner. How does the concept of basis-in, basis-out apply to partnership distributions?

Q: The Subchapter S status of a calendar year corporation is statutorily terminated

The Subchapter S status of a calendar year corporation is statutorily terminated on August 12, 2017. The Subchapter S status is deemed to be terminated on what date? What is the answer if the status w...

Q: Explain why nontaxable income and nondeductible expenses increase or reduce outside basis

Explain why nontaxable income and nondeductible expenses increase or reduce outside basis.

Q: When is it mandatory that a partner calculate his or her partner

When is it mandatory that a partner calculate his or her partner interest basis (outside basis)? What items affect the outside basis of a partner?

Q: How do taxation for the corporate form and taxation for the partnership

How do taxation for the corporate form and taxation for the partnership form differ?

Q: Elaborate on the term basis-in, basis-out.

Elaborate on the term basis-in, basis-out. What does that phrase mean in the context of a partnership formation?

Q: How can two partners, each with a 50% interest in

How can two partners, each with a 50% interest in a partnership, have different amounts of outside basis at the formation of a partnership? Shouldn’t the two partners contribute the same amount to hav...

Q: What are the differences between recourse, nonrecourse, and qualified nonrecourse

What are the differences between recourse, nonrecourse, and qualified nonrecourse liabilities? Which liabilities are considered at-risk?

Q: Discuss the at-risk concept and how it applies to the

Discuss the at-risk concept and how it applies to the deductibility of investment losses.