85 During the current year MAC Partnership reported the following items of

85 during the current year mac partnership reported

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when the distribution is made.85. During the current year, MAC Partnership reported the following items of receipts and expenditures: $600,000 sales, $80,000 utilities and rent, $200,000 salaries to employees, $20,000 guaranteed payment to partner Antonio, investment interest income of $4,000, a charitable contribution of $8,000, and a distribution of $30,000 to partner Carl. Antonio is a 25% general partner. Based on this information, what items will be reflected on Antonio’s Schedule K-1? The partnership’s ordinary taxable income is:Sales$600,000 Utilities and rent(80,000)Salaries(200,000)Guaranteed payment to Antonio(20,000)Partnership ordinary income$300,000 The partnership also reports the following information:Separately stated interest income $4,000 Guaranteed payment to partner$20,000Separately stated charitable contribution $8,000 The distribution to Carl is not deductible by the partnership. Antonio’s share of the partnership’s ordinary income is $75,000 ($300,000 ´ 25%). Antonio also reports his separately stated share of interest income ($1,000, or $4,000 ´ 25%) and charitable contributions ($2,000, or $8,000 ´ 25%). Antonio’s K-1 will also show his guaranteed payment of $20,000, his net earnings from self-employment ($95,000 = $75,000 ordinary income + $20,000 guaranteed payment), and other information he might need in order to prepare his return (e.g., AMT or investment income information).
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86. The LN partnership reported the following items of income and deduction during the current tax year: revenues, $300,000; cost of goods sold, $180,000; tax-exempt interest income, $2,000; salaries to employees, $80,000; and long-term capital gain, $10,000. In addition, the partnership distributed $20,000 of cash to 50% partner Nina and $10,000 of cash to 50% partner Len. What is Nina’s share of ordinary partnership income and separately stated items? The partnership’s ordinary taxable income is:Revenues $300,000 Cost of goods sold (180,000)Salaries (80,000)Partnership ordinary income $40,000Nina’s share ($40,000 ´ 50%) $20,000Separately stated tax-exempt income (not reported) $1,000Separately stated long-term capital gain (reported) $5,000The distributions to the partners are not deductible.87. Carli contributes land to the newly formed CD Partnership in exchange for a 30% interest. The land has an adjusted basis and fair market value of $300,000 and is subject to a liability of $100,000, which the partnership assumes. None of this liability is repaid at year-end. At the end of the year, the partnership has trade accounts payable of $20,000. Assume all liabilities are allocated proportionately to the partners. Total partnership incomefor the year is $400,000. What is Carli’s basis in her partnership interest at the end of the year? Carli’s basis in the partnership interest at the end of the year is determined as follows:Basis in land contributed to CD$300,000 Less: relief of liability assumed by partnership(100,000)Plus: share of liability related to land ($100,000 ´ 30%)30,000 Plus: share of trade accounts payable ($20,000 ´ 30%)6,000 Plus: share of partnership income120,000 Ending basis in partnership interest$356,000 88. An examination of the RB Partnership’s tax books provides the following information for the current year:Operating (ordinary) income before guaranteed payments$300,000 Long-term capital gain6,000
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