Week 3 homework Federal taxation

Week 3 homework Federal taxation - deducted Pg 21-58 23 a...

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Pg. 21-57 19. a) Ben has no gain on this contribution to the partnership. Section 721 applies. b) Ben will take $50,000 interest in his partnership c) Beth has no gain recognized. Section 721 applies d) Beth basis is $75,000 – cash $50,000 + $25,000 for services e) Adjusted Basis Fair Market Value From Ben Land contribution $50,000 $75,000 From Beth Cash contribution $50,000 $50,000 Services Rendered $25,000 $25,000 f) I would outline any expenses/deductibles that can be used for projecting any income or profit. Expenses such as operational costs, start-up costs and any depreciable assets can be
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Unformatted text preview: deducted. Pg. 21-58 23 a) $3,000 in legal fees and $5,000 in accounting fees are classified as organizational costs. $15,500 in advertising and $36,000 in other costs are classified as start up costs. Syndication costs can not be amortized nor deducted. b) Organizational costs: $5,000 initial year. Syndication costs – no deduction initial year Start up costs: $5,000 initial year c) The costs that are deducted are amortized over a period of 180 months. Syndication costs are not deducted or amortized....
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