Questions from Individual Taxation

Q: When might a new partner have an upward basis adjustment following the

When might a new partner have an upward basis adjustment following the acquisition of a partnership interest?

Q: David’s basis in the Jimsoo Partnership is $53,000.

David’s basis in the Jimsoo Partnership is $53,000. In a proportionate liquidating distribution, David receives cash of $7,000 and two capital assets: (1) land 1 with a fair market value of $20,000 an...

Q: Megan and Matthew are equal partners in the J & J Partnership

Megan and Matthew are equal partners in the J & J Partnership (calendar-year-end entity). On January 1 of the current year, they decide to liquidate the partnership. Megan’s basis in her partnership i...

Q: Bryce’s basis in the Markit Partnership is $58,000.

Bryce’s basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Bryce receives the following assets: a. How much gain or loss will Bryce recognize on...

Q: Danner Inc. has a $395,000 capital loss carryover

Danner Inc. has a $395,000 capital loss carryover that will expire at the end of the current tax year if it is not used. Also, Danner Inc. has been a general partner in the Talisman Partnership for th...

Q: Bella Partnership is an equal partnership in which each of the partners

Bella Partnership is an equal partnership in which each of the partners has a basis in his partnership interest of $10,000. Bella reports the following balance sheet: a. Identify the â€...

Q: Under what circumstances will a partner recognize a gain from an operating

Under what circumstances will a partner recognize a gain from an operating distribution?

Q: Michelle pays $120,000 cash for Brittany’s one-third

Michelle pays $120,000 cash for Brittany’s one-third interest in the Westlake Partnership. Just prior to the sale, Brittany’s basis in Westlake is $96,000. Westlake...

Q: Cliff’s basis in his Aero Partnership interest is $11,000

Cliff’s basis in his Aero Partnership interest is $11,000. Cliff receives a distribution of $22,000 cash from Aero in complete liquidation of his interest. Aero is an equal partnersh...

Q: Erin’s basis in her Kiybron Partnership interest is $3,300

Erin’s basis in her Kiybron Partnership interest is $3,300. Erin receives a distribution of $2,200 cash from Kiybron in complete liquidation of her interest. Kiybron is an equal part...