Questions from Individual Taxation

Q: Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar

Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership. Marco, Jaclyn, and Carrie ea...

Q: Franklin, Jefferson, and Washington formed the Independence Partnership (a

Franklin, Jefferson, and Washington formed the Independence Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership. Franklin...

Q: Generally, a selling partner’s capital account carries over to the purchaser

Generally, a selling partner’s capital account carries over to the purchaser of the partnership interest. Under what circumstances will this not be the case?

Q: Travis and Alix Weber are equal partners in the Tralix Partnership,

Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a §754 election in place. Alix sells one-half of her interest (25%) to Michael Tomei for $30,000 cas...

Q: Newton is a one-third owner of ProRite Partnership. Newton

Newton is a one-third owner of ProRite Partnership. Newton has decided to sell his interest in the business to Betty for $50,000 cash plus the assumption of his share of ProRite’s li...

Q: Coy and Matt are equal partners in the Matcoy Partnership. Each

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, th...

Q: Explain how a partner’s debt relief affects his amount realized in a

Explain how a partner’s debt relief affects his amount realized in a sale of partnership interest.

Q: Justin and Lauren are equal partners in the PJenn Partnership. The

Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bas...

Q: Adam and Alyssa are equal partners in the PartiPilo Partnership. The

Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following b...

Q: Describe the circumstances in which an S election may be involuntarily terminated

Describe the circumstances in which an S election may be involuntarily terminated.