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Individuals Allen and Betty are form an S corpora...




Individuals Allen and Betty are form an S corporation, with Allen contributing cash of $100,000 for a 50% interest and Betty contributing appreciated ordinary income property with an adjusted basis of $20,000 and a fair market value of $100,000. i. Determine Betty?s initial basis in her stock, assuming that she receives a 50% interest. ii. The S corporation sells the property for $120,000. Determine Allen?s and Betty?s stock basis after the sale. iii. Determine Allen?s and Betty?s gain or loss if the company is liquidated. Jason and Daniel are forming the JD Partnership. Jason contributes $300,000 cash and Daniel contributes nondepreciable property with an adjusted basis of $80,000 and a fair market value of $330,000. The property is subject to a $30,000 liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes. Jason and Daniel share in all partnership profits equally except for any precontribution gain, which must be allocated according to the statutory rules for built-in gain allocations. i. What is Daniel?s adjusted tax basis for his partnership interest immediately after the partnership is formed? ii. What is the partnership?s adjusted basis for the property contributed by Daniel? iii. If the partnership sells the property contributed by Daniel for $360,000, how is the tax gain allocated between the partners? In 1985, Al and Kelly acquire land for $500,000 with Al furnishing $200,000 and Kelly $300,000 of the purchase price. Title to the property is listed as equal joint tenancy with right of survivorship. Al dies first in 2009, when the land is worth $2,000,000. What is Kelly?s income tax basis in the property under each of the following assumptions? i. Al and Kelly are brothers. ii. Al and Kelly are husband and wife. iii. Al and Kelly are husband and wife and the land is community property. All three questions have three answers two them that need to be clearly explained part by part and have detailed answers and explanations. I need this done within a 20 minutes


Paper#3312 | Written in 18-Jul-2015

Price : $25