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At the end of the taxable year, H gave 25% interest in a family partnership to his daughter. H retained 75% interest. H continued to perform duties...

At the end of the taxable year, H gave 25% interest in a family partnership to his daughter. H retained 75% interest. H continued to perform duties for the partnership. Partnership income for the following year was $200,000. H's unpaid services were valued at $20,000. To avoid reallocation by the IRS, what amountshould be allocated to H as compensation for services?

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  • $20000
  • $30000
  • $50000

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$20000 [the value for... View the full answer

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