reported $200 orine invested $80,000 this year to purchase a 30% interest in the KLM Partnership....
What information do you need? The forms? The AB partnership, a cash method, calendar year partnership, had the following income and expenses for the past calendar year: (1) Gross income from business operations $130,000 (2) Expenses deductible under § 162(a) 40,000 (3) Depreciation on machinery (calculated under the 200% declining balance method) 30,000 (4) Charitable gifts 20,000 (5) 30,000 Gain on sale of equipment used in the partnership business, $20,000 of which is ordinary under § 1245(a), and $10,000 of...
Sue invested $5,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $20,000 of qualified nonrecourse debt and $20,000 of debt Sue is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt, resulting in a tax basis of $9,000 and an at-risk amount of $7,000. During the year, ABC LP generated a ($90,000) loss. How much of Sue's loss...
I need help with this problem, Thank you The AB partnership, a cash method, calendar year partnership, had the following income and expenses for the past calendar year: (1) Gross income from business operations $130,000 (2) Expenses deductible under § 162(a) 40,000 (3) Depreciation on machinery (calculated under the 200% declining balance method) 30,000 (4) Charitable gifts 20,000 (5) 30,000 Gain on sale of equipment used in the partnership business, $20,000 of which is ordinary under § 1245(a), and $10,000...
In Year 1, Lena invests $80,000 for a 20% partnership interest in an activity in which she works full time. The partnership reports losses of $300,000 in Year 1 and $150,000 in Year 2. Lena’s share of the partnership’s losses is $60,000 in Year 1 and $30,000 in Year 2. How much, if any, of Lena’s losses will be suspended? No suspended losses; no at risk losses. Year 1 passive losses suspended $60,000; Year 2 $20,000 passive loss suspended and...
Joseph and Savannah are partners in a limited partnership. Joseph is the general partner with a 70% profits interest. Savannah is the limited partner with a 30% profits interest. Even though Savannah is a limited partner, she agreed to make an additional $20,000 capital contribution at any time the partnership required additional working capital. At the end of the year, the balance sheet showed $200,000 in recourse liabilities and an additional $60,000 in nonrecourse liabilities. Joseph’s beginning adjusted basis in...
4. At the beginning of the year, Poe’s capital account balance in the Resistance Partnership (in which Poe owns a 40% interest) was $200,000. During the year Poe contributed cash ($40,000) and property (basis $20,000, fair market value $30,000). Resistance reported ordinary income of $100,000 and tax-exempt income of $6,000. At the end of the year, the partnership distributed $6,000 of cash to Poe. On the K-1, the partnership shows that Poe had a $50,000 share of nonrecourse LLC debt...
Nichole owns a 50% interest in partnership J&K. She contributed a computer system with a FMV of $15,000 and an adjusted basis of $10,00U tU un partnership. Neither Nichole nor the partnership recognized any gain when the property was contributed. Which of the following is true regarding dhe partnership's basis in the computer system and Nichole's outside basis? O Partnership's basis in computer system - $10,000, Nichole's outside basis - increases by $10,000. Partnership's basis in computer system - $10,000,...
for the tax year, OPQ partnership reported $42000 net ordinary income, $5000 intert income, $600 charitable contribution, and $18000 179 deduction. Pat is a general partner who owns a 20% interest in OPQ. In addition to her share of ordinary income, she received a $12000 guaranteed payment and had a $0 of distributions during the year. what is the amount of Play's self employment income from OPQ?
The partnership agreement of L, M, N and O was formed on January 2, 2020. The original cash investments were as follows: L, Capital $ 64,000 M, Capital 116,000 N. Capital 150,000 O, Capital 200,000 According to the partnership contract, the partners were to be remunerated as follows: Fixed Amounts of $20,000 for M and $15,000 for O. Interest at 8% on the average capital account balances during the year. Remainder divided as follows L -...
Problem 4 The partnership agreement of L, M, N and O was formed on January 2, 2020. The original cash investments were as follows: L, Capital $ 64,000 M, Capital 116,000 N. Capital 150,000 O, Capital 200,000 According to the partnership contract, the partners were to be remunerated as follows: 1. Fixed Amounts of $20,000 for M and $15,000 for O. 2. Interest at 8% on the average capital account balances during the year. 3. Remainder divided as follows L...