Partnership Taxation Paper 6

1

Curryís adjusted basis in Vantage Partnership was $5,000 at the time he received a nonliquidating distribution of land. The land had an adjusted basis of $6,000 and a fair market value of $9,000 to Vantage. What was the amount of Curryís basis in the land?






2

Hartís adjusted basis in Best Partnership was $9,000 at the time he received the following nonliquidating distribution of partnership property:
Cash $ 5,000
Land
Adjusted basis 7,000
Fair market value 10,000
What was the amount of Hartís basis in the land?






3

Dayís adjusted basis in LMN Partnership interest is $50,000. During the year Day received a nonliquidating distribution of $25,000 cash plus land with an adjusted basis of $15,000 to LMN, and a fair market value of $20,000. How much is Dayís basis in the land?






4

The adjusted basis of Jodyís partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000.
What amount of taxable gain must Jody report as a result of this distribution?






5

The adjusted basis of Jodyís partnership interest was $50,000 immediately before Jody received a current distribution of $20,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $35,000.
What is Jodyís basis in the distributed property?






6

On June 30, 2012, Berk, a calendar-year taxpayer, retired from his partnership. At that time, his capital account was $50,000 and his share of the partnershipís liabilities was $30,000. Berkís retirement payments consisted of being relieved of his share of the partnership liabilities and receipt of cash payments of $5,000 per month for eighteen months, commencing July 1, 2012. Assuming Berk makes no election with regard to the recognition of gain from the retirement payments, he should report income of
2012 . . . . 2013






7

The basis to a partner of property distributed in complete liquidation of the partnerís interest is the






8

In 2008, Lisa Bara acquired a one-third interest in Dee Associates, a partnership. In 2013, when Lisaís entire interest in the partnership was liquidated, Deeís assets consisted of the following: cash, $20,000 and tangible property with a basis of $46,000 and a fair market value of $40,000. Dee has no liabilities. Lisaís adjusted basis for her one-third interest was $22,000. Lisa received cash of $20,000 in liquidation of her entire interest. What was Lisaís recognized loss in 2013 on the liquidation of her interest in Dee?






9

For tax purposes, a retiring partner who receives retirement payments ceases to be regarded as a partner a. On the last day of the taxable year in which the partner retires. b. On the last day of the particular month in which the partner retires. c. The day on which the partner retires. d. Only after the partnerís entire interest in the partnership is liquidated. 69. John Albin is a retired partner of Brill & Crum, a personal service partnership. Albin has not rendered any services to Brill & Crum since his retirement in 2010. Under the provisions of Albinís retirement agreement, Brill & Crum is obligated to pay Albin 10% of the partnershipís net income each year. In compliance with this agreement, Brill & Crum paid Albin $25,000 in 2012. How should Albin treat this $25,000?






10

John Albin is a retired partner of Brill & Crum, a personal service partnership. Albin has not rendered any services to Brill & Crum since his retirement in 2010. Under the provisions of Albinís retirement agreement, Brill & Crum is obligated to pay Albin 10% of the partnershipís net income each year. In compliance with this agreement, Brill & Crum paid Albin $25,000 in 2012. How should Albin treat this $25,000?






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