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