Questions from General Taxation

Q: Nine years ago, Fred paid $20,000 cash for

Nine years ago, Fred paid $20,000 cash for a 2 percent limited interest in a very profitable partnership. Every year Fred has properly included his distributive share of partnership income in taxable...

Q: The 18 partners in KT Limited Partnership unanimously voted to convert their

The 18 partners in KT Limited Partnership unanimously voted to convert their partnership to an LLC. To make the conversion, each partner will exchange his interest in KT for a membership interest in t...

Q: Four individuals are evaluating the tax cost of operating their business as

Four individuals are evaluating the tax cost of operating their business as an S corporation. They assume that the corporation will pay no tax on its annual business income. They plan to incorporate t...

Q: George and Debbie were legally married on December 31, 2019.

George and Debbie were legally married on December 31, 2019. Can they file their 2019 income tax return using the status of married filing jointly? Why or why not? What other filing status choices do...

Q: For 2019, how can the amount of the sales tax deduction

For 2019, how can the amount of the sales tax deduction be determined?

Q: Jake has a Schedule C with the following assets:

Jake has a Schedule C with the following assets: Jake contributes these assets to form AJ Partnership and receives a 50% interest. AJ’s basis in the assets is: a. Cash $4,500; A/R...

Q: Allie contributed the following business assets to ASW Partnership on August 1

Allie contributed the following business assets to ASW Partnership on August 1, 2019: What is the holding period for the building and the inventory to ASW Partnership? a. Building—...

Q: Shelly contributed the following business assets to S&S Partnership on

Shelly contributed the following business assets to S&S Partnership on March 3, 2019: Basis FMV Date Purchased by Shelly Equipment $75,000 $ 45,000 07/01/18 Acct. Rec. $ 0 $100,...

Q: Which of the following is considered when calculating ordinary income for a

Which of the following is considered when calculating ordinary income for a partnership? a. Dividend income. b. § 179 expense. c. Guaranteed payments to partners. d. Capital gains and losses.

Q: Styron is a partner in Styron, Lee, & Jane Partnership

Styron is a partner in Styron, Lee, & Jane Partnership. Styron owned 25% from January 1, 2019, to June 30, 2019, when he bought Lee’s 25% interest. He owned 50% for the rest of the year. The partnersh...