Questions from Individual Taxation

Q: Under what circumstances can a partner recognize both gain and loss on

Under what circumstances can a partner recognize both gain and loss on the sale of a partnership interest?

Q: Absent any special elections, what effect does a sale of partnership

Absent any special elections, what effect does a sale of partnership interest have on the partnership?

Q: What distinguishes operating from liquidating distributions?

What distinguishes operating from liquidating distributions?

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

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

Q: In general, what effect does an operating distribution have on the

In general, what effect does an operating distribution have on the partnership?

Q: List two common situations that will cause a partner’s inside and outside

List two common situations that will cause a partner’s inside and outside basis to differ.

Q: Jerry is a 30% partner in the JJM Partnership when he

Jerry is a 30% partner in the JJM Partnership when he sells his entire interest to Lucia for $56,000 cash. At the time of the sale, Jerry’s basis in JJM is $32,000. JJM does not have any debt...

Q: The concept of the time value of money suggests that $1

The concept of the time value of money suggests that $1 today is not equal to $1 in the future. Explain why this is true.

Q: Joy is a 30% partner in the JOM Partnership when she

Joy is a 30% partner in the JOM Partnership when she sells her entire interest to Hope for $72,000 cash. At the time of the sale, Joy’s basis in JOM is $44,000 (which includes her $6,000 share...

Q: What are the limitations on the number and type of shareholders an

What are the limitations on the number and type of shareholders an S corporation may have? How are these limitations different from restrictions on the number and type of shareholders C corporations o...