This year, Alex’s distributive share from Eden Lakes Partnership includes $8,000 of interest income, $4,000 of net long-term capital gains, $2,000 net §1231 gain from the sale of property used in the partnership’s trade or business, and $83,000 of ordinary business income.a. Assume that Alex materially participates in the partnership. How much of his distributive share from Eden Lakes Partnership is potentially subject to the net investment income tax?

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At the beginning of the current year, David and Garrett formed the DG Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, David transferred property having a $35,000 FMV, a $28,000 adjusted basis, and subject to a $12,000 liability, which the partnership assumed. Garrett contributed $60,000 cash to the partnership. The partnership also borrowed $31,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $25,000 of net ordinary income and reinvested this amount in new property. Read the requirements. Requirement a. What is the partnership's and each partner's gain or loss recognized on the formation of the partnership? (Complete all input fields. If no gain or loss is recognized by a partner or the partnership, enter a "0".) Amount of Gain or Loss Requirements David…

Pablo has a $194,600 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate current distribution, cash of $77,840, cash basis receivables with an inside basis of $0 and a fair market value of $48,650, and land with a basis and fair market value to the partnership of $252,980. If an amount is zero, enter "0". How much is Pablo's realized and recognized gain on the distribution? Pablo has a realized gain on the distribution of $ b. and a recognized gain of $ What is Pablo's basis in the receivables, land, and partnership interest following the distribution? The receivables have a basis of $ and the land has a basis of $ to Pablo. His basis in his partnership interest after the distribution is $

Katherine invested $80,000 this year to purchase a 30% interest in the KLM Partnership. The partnership reported $200,000 of net income from operations, a $2,000 short-term capital loss, and a $10,000 charitable In addition, the partnership distributed $20,000 to Katherine and $10,000 each to partners Lauren and Missy. Assuming the partnership has no beginning or ending liabilities, what is Katherine's basis in her partnership interest at the end of the year?

Bhola

Jerry and Sherry own and operate a partnership. Jerry's capital balance is $50,000 and Sherry's is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/ loss equally, Allison intends to contribute $40,000 to receive a Twenty-five percent interest in the partnership. Required: a. Revalue the partnership assets b. Determine the total equity of the partnership after the new partner is admitted c. Determine the new partner's share of the total equity d. Determine the bonus resulting from Allison's equity of her contribution e. Make journal entries to rccord Allison's admission to the partnership

DeWar's basis in the DW Partnership is $116,000. In aproportionate liquidating distribution, DeWar receives the assets:   Tax Basis FMV Cash $16,000 $16,000 Plot- New Albany 40,000 90,000 Plot- Gahanna 40,000 50,000 A. How much gain or loss will DeWar recognize on the distribution? What is the character of any recognized gain or loss? B. What is DeWar's basis in the distributed assets?

Katrina was an S corporation shareholder. After her initial contributions, she had the following tax bases: 1) Basis in stock: $50,000 2) Basis in personal loan to S corp: $20,000 Over the first two years of the corporation's existence, the corporation experienced significant operating losses and Katrina's pass- through share of these was $60,000. Katrina materially participated in the S corporation's business. Which of the following statements regarding Katrina's tax situation is false? These were deductible losses to Katrina Katrina could deduct only $50,000 of the pass through losses. The remaining $10,000 was suspended. After these losses, Katrina had a $0 basis in stock and a $10,000 basis in loan none of the above

At the beginning of the current​ year, Ignatio and Bundy formed the IB Partnership by transferring cash and property to the partnership in exchange for a partnership​ interest, with each having a​ 50% interest.​ Specifically, Ignatio transferred property having a $65,000 ​FMV, a $38,000 adjusted​ basis, and subject to a $7,000 ​liability, which the partnership assumed. Bundy contributed $20,000 cash to the partnership. The partnership also borrowed $32,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current​ year, the partnership earned $22,000 of net ordinary income and reinvested this amount in new property. a. What is the​ partnership's and each​ partner's gain or loss recognized on the formation of the​ partnership? b. What is each​ partner's basis in his or her partnership interest at the end of the current​ year? c. For the​ partnership, prepare a tax and book balance sheet at the end…