Homework Answers
None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Explanation:-
Bright Line, LLC will report an ordinary loss of $27,000 on page 1 of Form 1065 ($155,000 − $95,000 − $52,000 − $35,000). However, 1/3 of this amount or ($9,000) must be allocated to Kim on her Schedule K-1.
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Kim received a 1/3 profits and capital interest in Bright Line. LLC in exchange for legal...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales $150,000, Cost of Goods Sold $90,000, Depreciation Expense $12,000, Long-Term Capital Gains $15,000, Qualified Dividends $6,000, and Municipal Bond Interest $3,000. How much ordinary...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchangefor legal services...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchangefor legal services she provided. In addition to her share of partnership prohts or losses, she receives a $30,000/guaranteed payment gach year for ongoing services she provides to the LLC Eor X4 Bright Line reported-the following revenues'and expenses: Sales $150,000 Cost of Goods Sold $90,000Depreciation Expense $12,000) Long-Term Capital Gains $15.000, Qualified Dividends $6,000, and Munic pal Bond Interest $3,000. How much ornary bueas eame floss will...
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in...
Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital’s balance sheet on the day Dave received his capital interest appears below: Basis Fair Market Value Assets: Cash $ 210,000 $ 210,000 Investments 100,000 126,000 Land 290,000 420,000 Totals $ 600,000 $ 756,000 Liabilities and capital:...
On January 1, X9, Gerald received his 50% profits and capital interest in High Air, LLC...
On January 1, X9, Gerald received his 50% profits and capital interest in High Air, LLC in exchange for $3,500 in cash and real property with a $4,500 tax basis secured by a $3,500 nonrecourse mortgage. High Air reported a $16,500 loss for its X9 calendar year. How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation?
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members...
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11.500 outside basis. (2) Joe, a member with a 45% profits and capital interest and a $16,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8.500 outside basis. The...
Diana is a 10% owner in an advertising agency named Bright Ideas (“BI”) (EIN 20-1234567). BI...
Diana is a 10% owner in an advertising agency named Bright Ideas
(“BI”) (EIN 20-1234567). BI is a
Subchapter S corporation. The company reported ordinary business
income for the year of $150,000.
Diana received a K-1 from BI reporting her allocation of this
business income. Sarah acquired the stock
several years ago. Her basis in the stock before considering her
2017 income allocation was $92,000.
Sarah is a passive owner with respect to this entity.
How can this be filled...
Based only on the example provided, fil out the form below with the ordinary income and...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
Question 1 Kylie is single and has taxable income of $320,000 of which $130,000 is attributable...
Question 1 Kylie is single and has taxable income of $320,000 of which $130,000 is attributable to her consulting sole proprietorship. She paid W-2 wages to her employees of $75,000. If the threshold amount for 2018 is $157,500, what is Kylie’s qualified business income deduction? Question 1 options: 1) $0 2) $11,000 3) $26,000 4) $32,500 Question 2 Sabrina is single and has taxable income of $195,700, of which $140,000 is attributable to her consulting sole proprietorship. She paid W-2...
QI:1-3 (book/static) Question Help Congressman Patrick indicates that he is opposed to tax proposals that call...
QI:1-3 (book/static) Question Help Congressman Patrick indicates that he is opposed to tax proposals that call for a flat tax rate because the structure would not tax those individuals who have the ability to pay the tax. Discuss the position of the congressman, giving consideration to tax rate structures (e.g. progressive, proportional, and regressive) and the concept of equity tax structure, the same tax rate applies Under a tax rate structure, the tax rate increases as the taxpayer's income increases....
Beverly and Ken Hair have been married for 3 years. Beverly works as an accountant at...
Beverly and Ken Hair have been married for 3 years. Beverly
works as an accountant at Cypress Corporation. Ken is a full-time
student at Southwest Missouri State University (SMSU) and also
works part-time during the summer at Cypress Corp. Ken's birthdate
is January 12, 1993 and Beverly's birthdate is November 4, 1995.
Beverly and Ken each received a W-2 form from Cypress Corporation
(see separate tab). The Hairs have interest income of $1,000 on
City of St. Louis bonds. Beverly...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales $150,000, Cost of Goods Sold $90,000, Depreciation Expense $12,000, Long-Term Capital Gains $15,000, Qualified Dividends $6,000, and Municipal Bond Interest $3,000. How much ordinary...
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchangefor legal services she provided. In addition to her share of partnership prohts or losses, she receives a $30,000/guaranteed payment gach year for ongoing services she provides to the LLC Eor X4 Bright Line reported-the following revenues'and expenses: Sales $150,000 Cost of Goods Sold $90,000Depreciation Expense $12,000) Long-Term Capital Gains $15.000, Qualified Dividends $6,000, and Munic pal Bond Interest $3,000. How much ornary bueas eame floss will...
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11.500 outside basis. (2) Joe, a member with a 45% profits and capital interest and a $16,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8.500 outside basis. The...
Diana is a 10% owner in an advertising agency named Bright Ideas
(“BI”) (EIN 20-1234567). BI is a
Subchapter S corporation. The company reported ordinary business
income for the year of $150,000.
Diana received a K-1 from BI reporting her allocation of this
business income. Sarah acquired the stock
several years ago. Her basis in the stock before considering her
2017 income allocation was $92,000.
Sarah is a passive owner with respect to this entity.
How can this be filled...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
QI:1-3 (book/static) Question Help Congressman Patrick indicates that he is opposed to tax proposals that call for a flat tax rate because the structure would not tax those individuals who have the ability to pay the tax. Discuss the position of the congressman, giving consideration to tax rate structures (e.g. progressive, proportional, and regressive) and the concept of equity tax structure, the same tax rate applies Under a tax rate structure, the tax rate increases as the taxpayer's income increases....
Beverly and Ken Hair have been married for 3 years. Beverly
works as an accountant at Cypress Corporation. Ken is a full-time
student at Southwest Missouri State University (SMSU) and also
works part-time during the summer at Cypress Corp. Ken's birthdate
is January 12, 1993 and Beverly's birthdate is November 4, 1995.
Beverly and Ken each received a W-2 form from Cypress Corporation
(see separate tab). The Hairs have interest income of $1,000 on
City of St. Louis bonds. Beverly...
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