This year, FGH Partnership generated $600,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. b. Identify the taxpayers who must pay tax on the partnership income and determine how much income must be reported by each.
Answer to relevant QuestionsRochelle is a partner in Megawatt Partnership. For 2015, her schedule K-1 from the partnership reported the following share of partnership items: Ordinary income ………………………… $25,000 Section 1231 loss ...This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y contributed business assets with a $50,000 FMV. Y’s adjusted basis in these assets was only $10,000. The partnership ...On January 1, 2014, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2014. a. How much of ...Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question: BR Inc. owns a 20 percent interest in a limited partnership. All the other partners are individual ...Mr. and Mrs. Janus operate a restaurant business as a sole proprietorship. The couple has decided to purchase $85,000 of new kitchen equipment for the restaurant. They also want to buy two new automobiles—one for their ...
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