Question

d. Only a and c. All of the above trusts are eligible to be S corporation shareholders. e. 8. Bill Burns and Bob Smarts were two partners in B&B, a calendar year partnership. B&B Partnership had an Bill is 60% and Bob is 40% owner of this income of $300,000 in 2018. The partnership had distributed half of the income to its partners in 2018. How much may Bob Smarts report on his individual tax return as his share of the partnership income in 2018? pa p. a. $90,000 b. $60,000 c. $150,000 d. $120,000 None of these e. 9. The Clifton partnership, a calendar year partnership, incurs and pays the following costs on September 1,2018, its first taxable year: Amount $14,000 S5,000 Item Legal fees for drafting the partnership agreement Printing marketing brochure Brokerage commissions to sell limited partnership interests $12,000 Accounting fees to set up the books $9,000 If the Clifton partnership makes a proper election, what is the maximum total deduction which it may take for the above costs on its 2018 partnership return? a. $778 b. $5,400 c. $511 d. $5,667

Answer 1

8) (e) none of these : As income earned from partnership firm shall be taxable in the hands of partnership firm as per income tax act,1961.