Question: A ( a cash method taxpayer ) is an equal partner in the ABCD partnership ( an accrual method taxpayer ) and has a $
A a cash method taxpayer is an equal partner in the ABCD partnership an accrual method taxpayer and has a $ outside basis in her partnership interest. A provides regular, ongoing services that are not related to the primary business activities of the partnership. Before any of the transactions described below, the partnership has $ of net ordinary income from business operations each year. What result in the following alternatives?aThe partnership will pay A $ per year for three years for his services.bWhat result in a above, if the compensation payments are made on January of the year following accrual?cHow would your answer to a change if the partnership generated no income from business operations for the year but instead generated $ of longterm capital gains?
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