Questions from Individual Taxation

Q: How do partners who purchase a partnership interest determine the tax basis

How do partners who purchase a partnership interest determine the tax basis and holding period of their partnership interests?

Q: Why do you think partnerships, rather than the individual partners,

Why do you think partnerships, rather than the individual partners, are responsible for making most of the tax elections related to the operation of the partnership?

Q: If a partner with a taxable year-end of December 31

If a partner with a taxable year-end of December 31 is in a partnership with a March 31 taxable year-end, how many months of deferral will the partner receive? Why?

Q: In what situation will there be a common year-end for

In what situation will there be a common year-end for the principal partners when there is no majority interest taxable year?

Q: Explain the least aggregate deferral test for determining a partnership’s year end

Explain the least aggregate deferral test for determining a partnership’s year end and discuss when it applies.

Q: When are partnerships eligible to use the cash method of accounting?

When are partnerships eligible to use the cash method of accounting?

Q: What is a partnership’s ordinary business income (loss) and how

What is a partnership’s ordinary business income (loss) and how is it calculated?

Q: Amy is the sole shareholder of a corporation. Rather than have

Amy is the sole shareholder of a corporation. Rather than have the corporation pay her a dividend, Amy decides to have the corporation declare a “bonus” at year-end and pay her tax-deductible compensa...

Q: What are some common separately stated items, and why must they

What are some common separately stated items, and why must they be separately stated to the partners?

Q: Is the character of partnership income/gains and expenses/losses

Is the character of partnership income/gains and expenses/losses determined at the partnership or partner level? Why?