Questions from Individual Taxation

Q: Describe how a partner determines his basis in distributed assets in cases

Describe how a partner determines his basis in distributed assets in cases in which a partnership distributes only money, inventory, and/or unrealized receivables in a liquidating distribution.

Q: How does a partner determine his basis in distributed assets when the

How does a partner determine his basis in distributed assets when the partnership distributes other property in addition to money and hot assets?

Q: SBT Partnership distributes $5,000 cash and a parcel of

SBT Partnership distributes $5,000 cash and a parcel of land with a fair market value of $40,000 and a $25,000 basis to the partnership to Sam (30% partner). What factors must Sam and SBT consider in...

Q: Discuss the underlying concern to tax policy makers in distributions in which

Discuss the underlying concern to tax policy makers in distributions in which a partner receives more or less than his share of the partnership hot assets.

Q: In general, how do the disproportionate distribution rules ensure that partners

In general, how do the disproportionate distribution rules ensure that partners recognize their share of partnership ordinary income?

Q: Why would a new partner who pays more for a partnership interest

Why would a new partner who pays more for a partnership interest than the selling partner’s outside basis want the partnership to elect a special basis adjustment?

Q: When an S corporation shareholder has suspended losses due to the tax

When an S corporation shareholder has suspended losses due to the tax-basis or at-risk limitation, is he allowed to deduct the losses if the S corporation status is terminated? Why or why not?

Q: Tempe Corporation is a calendar-year corporation. At the beginning

Tempe Corporation is a calendar-year corporation. At the beginning of 2016, its election to be taxed as an S corporation became effective. Tempe Corp.’s balance sheet at the end of 2...

Q: Assume the following S corporations and gross receipts, passive investment income

Assume the following S corporations and gross receipts, passive investment income, and corporate E&P. Will any of these corporations have its Selection terminated due to excessive passive income?...

Q: Identify whether the corporations described below are controlled foreign corporations.

Identify whether the corporations described below are controlled foreign corporations. a. Shetland PLC, a UK corporation, has two classes of stock outstanding, 75 shares of class AA stock and 25 sha...