CHAPTER10 tax problem-4302 - CHAPTER 10 SUPPLEMENTAL HANDOUT PARTNERSHIP TAXATION PROBLEMS 1 2 3 As of January 1 2015 the outside basis and at-risk

CHAPTER10 tax problem-4302 - CHAPTER 10 SUPPLEMENTAL...

This preview shows page 1 - 2 out of 3 pages.

CHAPTER 10 SUPPLEMENTAL HANDOUT PARTNERSHIP TAXATION PROBLEMS 1. As of January 1, 2015, the outside basis and at-risk basis of Regina's forty percent (40%) interest in the RT Partnership were $60,000. Regina and the partnership use the calendar year for income tax purposes. The partnership incurred an operating loss of $200,000 for the year of 2015 and a profit of $120,000 for the year of 2016. Regina is a material participant in the partnership. (a) How much loss, if any, may Regina recognize for 2015? (b) How much net reportable income must Regina recognize for 2016? (c) What is Regina's basis in her partnership interest as of January 1, 2016? (d) What is Regina's basis in her partnership interest as of January 1, 2017? (e) What year-end tax planning would you suggest to ensure that Regina can deduct her full share of partnership losses for 2015? 2. Pavla and Saja are equal partners in the calendar year P & S Partnership. For the year of 2016, the partnership had an Operating Loss of $60,000, a Long-Term Capital Loss of $4,000 and a Short- Term Capital Gain of $9,000. The partnership had no other transactions for the year of 2016. At the start of the year of 2016, Pavla's basis in her Partnership Interest in the P & S Partnership was $28,000 and Saja's basis in her Partnership Interest was $19,500.
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 3 pages?

  • Spring '11
  • williams
  • basis, Taxation in the United States, ARM Partnership

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture