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Text: Federal Taxation of Partnerships and Partners, McKee, Nelson, & Whitmire,

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Question;Text: Federal Taxation of Partnerships and Partners, McKee, Nelson, & Whitmire,with the current supplement. ISBN: 978-0-7913-8518-0Lesson Assignment # XXXXX Transfers of Partnership InterestsReadingText:Study Chapters 15 and 16 of the text.Lesson assignments must be prepared in Microsoft WORD? using the Times New Roman font,12 point, single space, and double space between paragraphs. Submit your responses to thesequestions in one WORD document. List the question first, and then your response.Your Senior Partner has asked you to research the following questions. In a memorandumprepared in a professional manner with all appropriate citations, answer the following questions.Please include three citations.Questions:1) Homer is a 10% partner and Burns is a 90% partner in a partnership that owns a piece of land outside of Springfield with a taxbasis of $50,000 and a value of $750,000. Homer and Burnsformed the partnership years ago. The land is encumbered by a $200,000 nonrecourse mortgage.a. If Homer sells his entire interest to Moe for $55,000 how much gain is recognized by Homer? What is the character of the gain? What are the tax consequences to Moe?b. If Homer transfers his to his wholly owned corporation in exchange for additional common stock in the corporation, does Homer recognize any gain?2) Steve and Andrew are equal partners in a partnership that operates a sporting goods store.The partnership has two assets: (a) inventory with a tax basis of $500,000 and a value of $900,000 and (b) goodwill with a tax basis of zero and a value of $3,100,000. Andrew andSteve each have an outside basis of $250,000. Steve sells a 25% interest in the partnership toRobin for $1,000,000. How much gain is recognized by Steve? What is the character of thegain?

 

Paper#50250 | Written in 18-Jul-2015

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