Questions from General Taxation

Q: In 2015, Jerry acquired an interest in a partnership in which

In 2015, Jerry acquired an interest in a partnership in which he is not a material participant. The partnership was profitable until 2016. Jerry’s basis in the partnership interest at the beginning of...

Q: An individual contributes property with a fair market value in excess of

An individual contributes property with a fair market value in excess of basis to a corporation in exchange for stock. What is the basis of the stock in the hands of the shareholder, and what is the b...

Q: Crystal owns 150 shares of Carson, Inc., stock that has

Crystal owns 150 shares of Carson, Inc., stock that has an adjusted basis of $100,000. On December 18, 2017, she sells the 150 shares for FMV ($88,000). On January 7, 2018, she purchases 200 shares of...

Q: On January 1, 2017, Myron sells stock that has a

On January 1, 2017, Myron sells stock that has a $50,000 FMV on the date of the sale (basis $75,000) to his son Vernon. On October 21, 2017, Vernon sells the stock to an unrelated party. In each of th...

Q: Harold owns 130 shares of stock in Becker Corporation. His adjusted

Harold owns 130 shares of stock in Becker Corporation. His adjusted basis for the stock is $210,000. On December 15, 2017, he sells the stock for $180,000. He purchases 200 shares of Becker Corporatio...

Q: Lewis owns 200 shares of stock in Modlin Corporation. His adjusted

Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $180,000. On December 15, 2017, he sells the stock for $170,000. He purchases 200 shares of Modlin Corporation...

Q: This year Robert had the following income and losses from four passive

This year Robert had the following income and losses from four passive activities: Activity 1……………………………..$(20,000) Activity 2………………………………..(10,000) Activity 3………………………………….(5,000) Activity 4……………………...

Q: Arnold exercised an incentive stock option in 2014, acquiring 1,

Arnold exercised an incentive stock option in 2014, acquiring 1,500 shares of stock at an option price of $80 per share. The FMV of the stock at the date of exercise was $110 per share. In 2016, the r...

Q: Barbara is single and owns a home in the city, which

Barbara is single and owns a home in the city, which is her primary residence. She also owns a cottage at the beach, which she treats as a vacation home. In April 2017, she borrowed $50,000 on a home...

Q: Zach contributed land with a FMV of $25,000 and

Zach contributed land with a FMV of $25,000 and a basis of $14,000 to a partnership on April 5, 2011. On June 6, 2017, the partnership distributed the land to Art, a partner in the same partnership. A...