Alpha and Bravo were equal partners in the CDE Partnership, a marketing consulting company. At start-up of
Question:
Alpha and Bravo were equal partners in the CDE Partnership, a marketing consulting company. At start-up of the CDE Partnership on January 1, Year 1, Alpha and Bravo each contributed $50,000 in cash. A list of Year 1 activity for CDE Partnership is provided below.
1. Make a table to determine Alpha's tax (inside) basis in her partnership interest at the end of Year 1. Not all items may be needed for the determination. For any item not needed, enter a zero (0). Enter increases in tax basis as positive amounts and decreases in tax basis as negative amounts. 2. Determine Alpha's year end outside basis in the partnership. 3. Determine Alpha's ending basis in the company if the entity was taxed as an S-Corporation.
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse