Homework_Set_8 - Tax 4001 Judd Homework Set#8 2011/2012 1...

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Tax 4001 Judd Homework Set #8 2011/2012 1. Rob and Bob are equal partners in the accrual basis RB Partnership. At the beginning of the year, Rob’s basis in the partnership (including his share of liabilities) was $100,000. Also, at the beginning of this year, the partnership’s debts totaled $80,000 payable to unrelated parties. All partnership debt is shared equally between the partners. The following is information about RB’s current operations: Ordinary Income $ 80,000 Interest from City Bond $ 4,000 §1231 Gain $ 6,000 LTCL $ 750 STCL $ 550 Political Contributions $ 2,800 Charitable Contribution to Red Cross $ 850 Cash distribution to Rob $ 15,300 Payment of Rob's personal expenses $ 2,150 At the end of this partnership debt payable to unrelated parties is $95,000. a. What will Rob include in his taxable income as a result of RB’s activities? b. What is Rob’s basis in the partnership interest at the end of the year? 2. The ABC Partnership plans to distribute cash of $23,500 to long-time partner John at the end of the tax year. The partnership will report a loss for the year and John’s share of the loss is $11,500. He has a basis of $16,000 in his partnership interest, including his share of partnership liabilities, prior to consideration of the
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This note was uploaded on 09/16/2011 for the course TAX 4001 taught by Professor Hampton,m during the Fall '08 term at University of Central Florida.

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Homework_Set_8 - Tax 4001 Judd Homework Set#8 2011/2012 1...

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