Two people want to form a partnership and want to transfer business assets into the partnership. They are afraid of tax issues with the transfer what do you tell them?

file a case against a partnership, without impleading the partners and the partnership is then held liable by the court, will the partners' If you personal assests be also held liable, if the partnerships assets are insufficient?

parthership Tirm is relevant as between him and the other members of the HUF. The income the Karta receives as a partner is not his individual income; it is the income of the HUF and he receives it on behalf of the HUF. It is for this reason that the income of the wife arising from her membership of the partnership fim, is held not includible in the income of the HUF since the total income of the HUF is not the total income of the individual (husband). For section 64(1) to get attracted, it is necessary that the spouse should be a partner in a partnership firm in his individual capacity. It is not attracted where he is a partner as the Karta of the HUF to which his wife belongs. The action of the Assessing Officer in this case is, therefore, not correct. Question 17 Dinesh, an individual engaged in the business of finance, advances 5 lacs to his HUF on interest at 12% p.a., which is the prevailing market rate. The HUF invests the amount profit of 2 lacs from this money. Can the…

When a partnership liquidates, do partners get paid first or do creditors get paid first?

Husband and Wife have two children and decide to divorce. Husband later remarries. He is concerned about his new wife inheriting his estate without sufficient assets being distributed to his two children. Which of the following trusts would be most appropriate to ensure the children receive sufficient assets from Husband's estate?     A) A power of appointment trust that names the new wife as the sole income beneficiary and qualifies for the marital deduction, and the children as the remainder beneficiaries     B) A revocable living trust that names the new wife as the income beneficiary with a general power of appointment, and the children as the remainder beneficiaries     C) A testamentary trust that names the new wife as the sole beneficiary and states that it is Husband's wish for the new wife to distribute 10% of the assets to each child upon their 25th birthdays     D) A qualified terminable interest property trust (QTIP) that names the new wife as the income…

Henry and Rita disagree about how to manage their finances after their marriage, and their children are concerned about receiving their inheritances. Which of the following would be a good strategy to allow Henry and Rita to agree on how their property is divided while they are living and also agree on the relinquishment of marital property rights when one of them dies? Henry and Rita should execute a premarital property agreement. Henry and Rita should title all of their assets as JTWROS after they are married.     A) Neither I nor II     B) II only     C) I only     D) Both I and II

Husband and Wife have two biological children and one adopted child. Now that the adoption is finalized, Husband and Wife believe they should update their estate plan. Which of the following statements is NOT correct concerning the adopted child? A)An adopted child will automatically inherit from both an adoptive parent and a non-adoptive step-parent.   B)An adopted child cannot automatically inherit from his or her biological parent(s) and also from his or her adoptive parent(s).   C)An adoptive parent may disinherit an adopted child.   D)An adopted child will receive an equal share as a biological child under the intestate statutes.

K is a capitalist partner. In the articles of partnership, it was provided that K’s duty was to provide capital only. One day, K was asked to assist the accountant of the partnership so that they can immediately pay the taxes on time. Among the rights of a partner, what can K avail to get payment for the extra hours of work for the partnership?   Right to share in the profits None of the above Right to return of capital Right to compensation

Your client wants to purchase a residence for his aging parents, while minimizing the burden of ownership of the property for them and maximizing their enjoyment of it. Which one of the following states an advantage of titling the property in your client's name as sole owner rather than in joint tenancy with right of survivorship with his parents?     A) The property will receive a step-up in basis when his parents die.     B) The property will pass to his parents outside of probate.     C) He will avoid gift tax liability by titling the property this way.     D) His parents will have a life estate in the property if he predeceases them.