Questions from General Taxation

Q: All of the following are considered separately stated items to a partnership

All of the following are considered separately stated items to a partnership except: a. Charitable contributions. b. § 179 expense. c. Depreciation. d. Capital gains and losses.

Q: Which of the following items from a partnership go into the calculation

Which of the following items from a partnership go into the calculation of a partner’s self- employment income? a. Rental income. b. Dividend income. c. Interest income. d. § 179 expense.

Q: A partner’s share of ordinary income or loss and separately stated items

A partner’s share of ordinary income or loss and separately stated items is reported to the partner via what form? a. Form 1065. b. Form 1040, Schedule SE. c. Form 1065, Schedule K-1. d. Form 1065, S...

Q: Retish is a 10% partner in a partnership. The partnership

Retish is a 10% partner in a partnership. The partnership pays Retish a guaranteed payment of $45,000 per year. If the partnership’s ordinary income is $38,000 before considering the guaranteed paymen...

Q: The calculation of a partner’s basis in his or her partnership interest

The calculation of a partner’s basis in his or her partnership interest is mandatory in which of the following situations? a. In a partnership loss year. b. At the liquidation or disposition of a par...

Q: The amount of savings bond interest exempt from tax is limited when

The amount of savings bond interest exempt from tax is limited when an individual is single and his or her AGI reaches a. $121,600. b. $81,100. c. $79,550. d. $96,100.

Q: Maggie and Davis are equal partners in a partnership. When forming

Maggie and Davis are equal partners in a partnership. When forming the partnership, Davis contributed a building with an FMV of $550,000 and a basis of $175,000. During the first year of operations, t...

Q: All of the following items usually affect the basis of a partnership

All of the following items usually affect the basis of a partnership interest except: a. Cash or property contributed. b. Guaranteed payments. c. Partnership income or loss items. d. A partner’s shar...

Q: Partner Beth has a basis of $10,000 in a

Partner Beth has a basis of $10,000 in a partnership at the beginning of the year. She receives $6,000 in cash distributions, her distributive share of income is $5,000, and she receives a land distri...

Q: Molly, a 30% partner in XYZ Partnership, has a

Molly, a 30% partner in XYZ Partnership, has a basis of $55,000 in her partnership interest. She receives a cash distribution of $54,000 at year-end. The distribution has what tax effect on Molly? a....