PROBLEM SET 1. Blake is a general partner in the BCD limited partnership; Charlie and Dave...
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PROBLEM SET 1. Blake is a general partner in the BCD limited partnership; Charlie and Dave are limited partners. Blake's interest is 20%, and Charlie's and Dave's interests are each 40%. The basis of Blake's general partnership interest is $200, and its fair market value is $300. Each of Charlie and Dave has a $400 basis in their partnership interests, which are worth $600. The partnership has no debts and distributes all of its taxable income currently. (a) Blake buys one-half of Charlie's limited partnership interest for $300. What are the tax consequences to Charlie? (b) Blake buys all of Charlie's limited partnership interest for $600, following which Blake sells all of the general partnership interest to Dave for $300. What are the tax consequences to Blake? (c) Blake buys all of Charlie's limited partnership interest for $600, following which Blake sells all of the limited partnership interest to Elvis for $600. What are the tax consequences to Blake? in the EF partnershin E- PROBLEM SET 1. Blake is a general partner in the BCD limited partnership; Charlie and Dave are limited partners. Blake's interest is 20%, and Charlie's and Dave's interests are each 40%. The basis of Blake's general partnership interest is $200, and its fair market value is $300. Each of Charlie and Dave has a $400 basis in their partnership interests, which are worth $600. The partnership has no debts and distributes all of its taxable income currently. (a) Blake buys one-half of Charlie's limited partnership interest for $300. What are the tax consequences to Charlie? (b) Blake buys all of Charlie's limited partnership interest for $600, following which Blake sells all of the general partnership interest to Dave for $300. What are the tax consequences to Blake? (c) Blake buys all of Charlie's limited partnership interest for $600, following which Blake sells all of the limited partnership interest to Elvis for $600. What are the tax consequences to Blake? in the EF partnershin E-
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aCharlies basis in his partnership interest is increased by 300 and his holdings are now worth 900 When Blake buys Charlies interest in the partnershi... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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