Questions from Individual Taxation


Q: Reggie contributed $10,000 in cash and a capital asset

Reggie contributed $10,000 in cash and a capital asset he had held for three years with a fair market value of $20,000 and tax basis of $10,000 for a 5 percent capital and profits interest in Green Va...

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Q: Connie recently provided legal services to the Winterhaven LLC and received a

Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $50,000 of accounts payable and no other debt. Th...

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Q: Mary and Scott formed a partnership that maintains its records on a

Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: At the end of the current year, Kari will re...

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Q: What must a shareholder do to waive the family attribution rules in

What must a shareholder do to waive the family attribution rules in a complete redemption of stock?

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Q: Dave LaCroix recently received a 10 percent capital and profits interest in

Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the ad...

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Q: Last December 31, Ramon sold the 10 percent interest in the

Last December 31, Ramon sold the 10 percent interest in the Del Sol Partnership that he had held for two years to Garrett for $400,000. Prior to selling his interest, Ramon’s basis in Del Sol was $200...

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Q: Granite Slab LLC was recently formed with the following members:

Granite Slab LLC was recently formed with the following members: What is the required taxable year-end for Granite Slab LLC?

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Q: Tall Tree LLC was recently formed with the following members:

Tall Tree LLC was recently formed with the following members: What is the required taxable year-end for Tall Tree LLC?

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Q: Rock Creek LLC was recently formed with the following members:

Rock Creek LLC was recently formed with the following members: What is the required taxable year-end for Rock Creek LLC?

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Q: Ryan, Dahir, and Bill have operated Broken Feather LLC for

Ryan, Dahir, and Bill have operated Broken Feather LLC for the last four years using a calendar year-end. Each has a one-third interest. Since they began operating, their busy season has run from June...

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