"Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe's adjusted basis in his partnership interest is $10,000 and Jane's adjusted basis is $2,000. During the year, Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following partnership activity for the year, determine each partner's adjusted basis in Quick and Reddy at the end of the taxable year. Ordinary income........... $60,000 Section 1231 gains.........$1,000 Interest from Munipal Bonds..$500 Short-term capital losses....$2000 Charitable contributions.....$3000 Elder Attorney had practiced law for several years and had accumulated $50,000 in accounts receivable. He reported his income for tax purposes under the cash receipts and disbursements method. Elder formed an equal partnership with senior counsel, lawyers Unlimited, a cash-basis law partnership, and transferred his $50,000 accounts receivable to the partnership for their admitted FMV of $50,000. In the first year of the partnership, its cash-basis income was $100,000, $50,000 of which was the collection of transferred receivables. When is the income of the partnership reported and by whom?"
Paper#4819 | Written in 18-Jul-2015Price : $25