For each of the following situations, determine the amount of income that the partner should report as
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Question:
For each item, enter the appropriate amount in the associated cell. If the amount is zero, enter a zero (0). If no amount is required, enter a zero (0) or leave the cell blank.
Situation:
Jimmy owns a 30% share of a partnership with an AB of $28,000. He gave his share of the partnership to Ricky as a gift. At that time, the partnership had total liabilities of $100,000. How much gain (if any) must Jimmy recognize?
Jerry has a 15% interest in the profit and losses of a partnership. The partnership's ordinary income is $125,000 before a $10.000 deduction for a guaranteed payment made to Jerry for services rendered. What is Jerry's total reportable income?
Goldie has a 25% interest in a partnership. For the year ended December 31, Year 2, Goldie's share of partnership income was $50,000, which included LTCG of $6,000, tax-exempt income of $3,000, $10,000 of interest, and $700 of dividends. What is Goldie's ordinary business income allocation?
Betsy contributed an asset with an AB of $60.000 and a FMV of $75,000 when she joined a partnership as a 50% partner. Two years later, the partnership sold the asset for $100,000. How much of the gain should be allocated to Betsy?
David sold 35% of his business to his daughter, Morgan. The new partnership had operating income of $75,000. David performed services worth $40,000, and Morgan performed no services. Capital is a material income-producing factor. How much income should Morean report?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: