In each of the following problems, discuss relevant tax codes. A, B, C, and D form a general partnership in which they each have an equal interest in capital and profits. partners and the partnership are cash method taxpayers. exchange for their respective partnership interests, each partner transfers the following assets, all of which have been held long-term: 1. All the In Partner Asset Adjusted Basis FMV $30,000 $70,000 22,000 Land Goodwill Auto previously held for personal use A 10,000 8,000 Equipment sect. 1245 gain) Installmentnote from the sale of land Inventory B (all 25,000 45,000 20,000 5,000 25,000 30,000 Building $20,000 of sect. 1250 gain) Land Receivables for services rendered to E (subject to 25,000 25,000 60,000 10,000 30,000 Cash 100,000 100,000 (c) Although each partner contributes property of equal value, D transfers only cash while the other partners contribute appreciated property. Section 704 (c) requires the partnership to allocate the precontribution gain or loss solely to the contributing partner when the partnership subsequently disposes of the property. objective of this section. What is the
In each of the following problems, discuss relevant tax codes. A, B, C, and D form a general partnership in which they each have an equal interest in capital and profits. partners and the partnership are cash method taxpayers. exchange for their respective partnership interests, each partner transfers the following assets, all of which have been held long-term: 1. All the In Partner Asset Adjusted Basis FMV $30,000 $70,000 22,000 Land Goodwill Auto previously held for personal use A 10,000 8,000 Equipment sect. 1245 gain) Installmentnote from the sale of land Inventory B (all 25,000 45,000 20,000 5,000 25,000 30,000 Building $20,000 of sect. 1250 gain) Land Receivables for services rendered to E (subject to 25,000 25,000 60,000 10,000 30,000 Cash 100,000 100,000 (c) Although each partner contributes property of equal value, D transfers only cash while the other partners contribute appreciated property. Section 704 (c) requires the partnership to allocate the precontribution gain or loss solely to the contributing partner when the partnership subsequently disposes of the property. objective of this section. What is the
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:In each of the following problems, discuss relevant tax codes.
A, B, C, and D form a general partnership in which they each
have an equal interest in capital and profits.
partners and the partnership are cash method taxpayers.
exchange for their respective partnership interests, each
partner transfers the following assets, all of which have
been held long-term:
1.
All the
In
Partner
Adjusted Basis
Asset
FMV
$30,000
Land
Goodwill
$70,000
22,000
A
Auto previously held
for personal use
10,000
8,000
Equipment
sect. 1245 gain)
Installmentnote
from the sale of
land
Inventory
B
(all
25,000
45,000
20,000
5,000
25,000
30,000
Building
$20,000 of sect. 1250
gain)
Land
(subject to
25,000
25,000
60,000
10,000
Receivables for services
rendered to E
30,000
D
Cash
100,000
100,000
|
'(c)
Although each partner contributes property of equal value, D
transfers only cash while the other partners contribute
appreciated property. Section 704 (c) requires the
partnership to allocate the precontribution gain or loss
solely to the contributing partner when the partnership
subsequently disposes of the property.
objective of this section.
What is the
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