Q: Karen has a $68,000 basis in her 50%
Karen has a $68,000 basis in her 50% partnership interest in the KD Partnership before receiving a current distribution of $6,000 cash and land with a fair market value of $35,000 and a basis to the p...
See AnswerQ: Pam has a $27,000 basis (including her share
Pam has a $27,000 basis (including her share of debt) in her 50% partnership interest in the Meddoc partnership before receiving any distributions. This year Meddoc makes a current distribution to Pam...
See AnswerQ: Two years ago, Kimberly became a 30 percent partner in the
Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,000 basis and $16,000 fair market value. On January 2 of this year, Kimberl...
See AnswerQ: Rufus is a one-quarter partner in the Adventure Partnership.
Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest. Adventure has only c...
See AnswerQ: When a corporation’s Selection is terminated mid-year, what options
When a corporation’s Selection is terminated mid-year, what options does the corporation have for allocating the annual income between the S corporation short year and the C corporation short year?
See AnswerQ: The Taurin Partnership (calendar-year-end) has the
The Taurin Partnership (calendar-year-end) has the following assets as of December 31 of the current year: On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts receivable, and...
See AnswerQ: Melissa, Nicole, and Ben are equal partners in the Opto
Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her pa...
See AnswerQ: Lonnie Davis has been a general partner in the Highland Partnership for
Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plan...
See AnswerQ: AJ is a 30% partner in the Trane Partnership, a
AJ is a 30% partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $73,000, which includes his share of the $50,000 of partners...
See AnswerQ: Super Corp. was organized under the laws of the state of
Super Corp. was organized under the laws of the state of Montana. It issued common voting stock and common nonvoting stock to its two shareholders. Is Super Corp. eligible to elect S corporation statu...
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