95%(103)98 out of 103 people found this document helpful
This preview shows page 22 - 24 out of 28 pages.
What depreciation deduction may the partnership claim if the partnership makes no Section 754 election to adjust the basis of its assets? If it makes a Section 754 election? 65. Doug Crepit, a 30 percent partner of Weeping, a calendar year partnership, died on July 1. The partnership continued to operate throughout the year and reported the 30 percent share of partnership profits to be $60,000, all earned pro rata during the year, $5,000 each month. Doug's other income for 2012 to the date of his death was $50,000. His estate succeeded to his interest in the partnership and in addition it earned $40,000 by December 31. The estate elected a June 30th fiscal year but distributed to Ms. Crepit during December all of its reportable partnership earnings plus the $40,000 of its other earnings. Ms. Crepit had no other income, but the executor of Mr. Crepit's estate consents for her to file a joint return with her deceased husband. What gross income will they report on the joint return for the year of death? 66. Harvey Harrison has a basis of $30,000 for his partnership interest. He receives as a current distribution the following as his pro rata share of the partnership assets: Basis FMV Cash $5,000 $5,000 Accounts receivable --0-- 12,000 Land held for investment10,000 13,000 Total $15,000$30,000 (a.) What is Harvey's gain or loss on the distribution? (b.) What is his basis for the accounts receivable?
(c.) What is his basis for the land? (d.) What is his basis for his partnership interest?