is the gain on the sale of a partnership interest, non-passive income?
is the gain on the sale of a partnership interest, non-passive income?
Homework Answers
The gain on sale of a partnership interest is non-passive income only for the active partners. For a passive partner, for example, for a limited partner in a partnership, the gain on the sale of a partnership interest would be a passive income.
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is the gain on the sale of a partnership interest,
non-passive income?
Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted...
Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted basis of $341,500 for $375,650. In addition, she has current and suspended losses of $51,225 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss. Her total gain is $ 25,000 X and her deductible loss is $ -3,000 X. b. What type of income can the deductible loss offset? Lucy's deductible loss is...
Ewan is a non-resident of California and hold a partnership interest in a California partnership. he...
Ewan is a non-resident of California and hold a partnership interest in a California partnership. he received a schedule K one from the California partnership that included net income of 10,000 from California sources.What amount of the distributive share a partnership net income is taxable by California? A .0$ B.5000$ C 7500 D 10,000
Problem 4-11 Passive Loss Limitations (LO 4.8) Walter, a single taxpayer, purchased a limited partnership interest...
Problem 4-11 Passive Loss Limitations (LO 4.8) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1992. He also acquired a rental house in 2018, which he actively manages. During 2018, Walter's share of the partnership's losses was $30,000, and his rental house generated $20,000 in losses. Walter's modified adjusted gross income before passive losses is $130,000. If an amount is zero, enter "0". a. Calculate the amount of Walter's allowable deduction for rental house...
Nell earns $50,000 salary income in the current year. In addition, Nell sells a passive activity...
Nell earns $50,000 salary income in the current year. In addition, Nell sells a passive activity with an adjusted basis of $45,000 for $155,000 in the current year. Suspended losses attributable to this property total $45,000. Nell owns another separate passive activity which has $10,000 passive loss for the current year and $80,000 suspended passive losses from prior years. Nell will report the following on her current year income tax return (as a result of just these transactions): a. $$50,000...
Question is PA12-8 Page 48 Sale of the partnership assets (except cash). 1 Allocation of gain...
Question is PA12-8
Page 48 Sale of the partnership assets (except cash). 1 Allocation of gain or loss to each of the partners. 1 Payment of outstanding partnership liabilities. Duribution of remaining cash to partners. 1128 Liquidating a Partnership with Capital Deficiency (payment and nonpayment by partner) and Making Journal Entries Asume the same facts as in PA12-7. Required: Isme the Shasta, Sheba, and Sheeva partnership sold its assets (except cash) for $12,000. Record the iloving entries: 1 Sale of...
The QSBC stock sale gain exclusion is not available to a QSBC shareholder that is: a. an individual b. a partnership c....
The QSBC stock sale gain exclusion is not available to a QSBC shareholder that is: a. an individual b. a partnership c. A corporation d. A s corporation
Shauna is a 50 percent partner in the SH Partnership. Shauna sells one-half of her interest to Kara for $60,000 cash. Ju...
Shauna is a 50 percent partner in the SH Partnership. Shauna sells one-half of her interest to Kara for $60,000 cash. Just before the sale, Shauna's basis in her entire partnership interest is $150,000, including her $60,000 share of the partnership liabilities. SH's assets on the sale date are as follows: Assets Basis FMV Cash $80,000 $80,000 Inventory 60,000 $180,000 Land held for investment 160,000 100,000 Total $300,000 $360,000 What is the amount and character of Shauna's gain or loss...
FMV. Partner A wishes to sell her interest in a partnership to an outside individual. Her...
FMV. Partner A wishes to sell her interest in a partnership to an outside individual. Her adjusted basis at the date of disposition is $15,000. The partnership property is valued as follows: Book! Cash Basis 48,000 48.000 AR 36,000 Inventory 75,000 100,000 Land 50,000 80,000 Equipment 10,000 12,000 1. What is the realized gain on the sale? 2. What portion of the realized gain is ordinary income?
Nick Marvel acquired a passive partnership activity in January of 2013. His at-risk basis at the...
Nick Marvel acquired a passive partnership activity in January of 2013. His at-risk basis at the beginning of 2017 was $45,000. Nick Marvel also owns a rental property that generated income of $15,000 in 2017and $12,000 in 2018. Nick Marvel’s share of income and loss from the partnership activity is:2017<$69,000>2018 25,000Complete the following tables.AT RISK RULES ONLYFOR 2017Deductible under at-risk provisions____________________Adjusted basis at 12/31/17____________________Suspended under at-risk provisions____________________FOR 2018Deductible under at-risk provisions____________________Adjusted basis at 12/31/18____________________Suspended under at-risk provisions____________________PASSIVE RULES ONLYFOR 2017Deductible...
A partner owns a 50-percent interest in a partnership. For the partnership tax year ended December...
A partner owns a 50-percent interest in a partnership. For the partnership tax year ended December 31, the partnership reports the following items of partnership income, gain, loss, deduction, and credit. Gross sales $400,000 Cost of goods sold 220,000 Wages 100,000 Net Section 1231 gain 50,000 Casualty loss 10,000 Interest 5,000 Depreciation 20,000 Business bad debt 5,000 Charitable contributions 5,000 Calculate the partner's distributive shares of (1) partnership ordinary income or loss and (2) separately stated items.
Exercise 11-28 (Algorithmic) (LO. 3) Lucy sells her partnership interest, a passive activity, with an adjusted basis of $341,500 for $375,650. In addition, she has current and suspended losses of $51,225 associated with the partnership and has no other passive activities. a. Calculate Lucy's total gain and her current deductible loss. Her total gain is $ 25,000 X and her deductible loss is $ -3,000 X. b. What type of income can the deductible loss offset? Lucy's deductible loss is...
Question is PA12-8
Page 48 Sale of the partnership assets (except cash). 1 Allocation of gain or loss to each of the partners. 1 Payment of outstanding partnership liabilities. Duribution of remaining cash to partners. 1128 Liquidating a Partnership with Capital Deficiency (payment and nonpayment by partner) and Making Journal Entries Asume the same facts as in PA12-7. Required: Isme the Shasta, Sheba, and Sheeva partnership sold its assets (except cash) for $12,000. Record the iloving entries: 1 Sale of...
FMV. Partner A wishes to sell her interest in a partnership to an outside individual. Her adjusted basis at the date of disposition is $15,000. The partnership property is valued as follows: Book! Cash Basis 48,000 48.000 AR 36,000 Inventory 75,000 100,000 Land 50,000 80,000 Equipment 10,000 12,000 1. What is the realized gain on the sale? 2. What portion of the realized gain is ordinary income?
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