Acc 401 Week 5
401
Week 5 Assignment
ACC401/Federal Income Taxes
Instructor: Jacob Burdick
February 16, 2013
Ch.14
48.
A partner contributes property to a partnership; the basis of the property carries over to the partnership (outside basis). This concept is known as basis –in, basis –out. So, Denise’s beginning basis should be: Basis Cash $ 20,000 Office equipment $ 5,000 Auto $ 6,000 Partnership Basis $ 31,000
49.
A. what is Patti’s basis in her partnership interest?
The basis for her partnership interest will be $45,000.
B. What is Patti’s holding period of her partnership interest?
The holding period of the partnership interest includes the partner’s holding period for the 1232 assets contributed. The holding period starts the day after the taxpayer acquired the property and includes the day the property is sold. Three year is holding period - the same as the equipment in the hands of the partner.
C. What is the basis of the equipment in the hands of the partnership?
$45,000 is the basis.
D. What is the holding period of the equipment in the hands of the partnership?
3 years
E. how will the partnership depreciate the equipment in the year of contribution?
The partnership starts depreciating it in the third year.
52.
A. how much income must Barry report from BK Partnership?
Barry income:
Guaranteed payment $55,000
Ordinary income ($24,000*50%) $12,000 $67,000
B. What is the effect on Barry’s partnership basis?
Barry basis:
Income basis $12,000
Withdraw $10,000 $ 2,000 current Barry’s basis
Ch.15
47.
Under 80% rule, The basis of the stock in the hands of the shareholder is equal to the basis of the property contributed, plus any gain recognized, minus any boot received (including relief of liabilities). A. Contribution of property with a basis of $1,000 and a FMV of $1,400.
The should be $1,000 basis
B. Contribution of property with a basis of $3,000 and a FMV of $3,800. The stock
Week 5 Assignment
ACC401/Federal Income Taxes
Instructor: Jacob Burdick
February 16, 2013
Ch.14
48.
A partner contributes property to a partnership; the basis of the property carries over to the partnership (outside basis). This concept is known as basis –in, basis –out. So, Denise’s beginning basis should be: Basis Cash $ 20,000 Office equipment $ 5,000 Auto $ 6,000 Partnership Basis $ 31,000
49.
A. what is Patti’s basis in her partnership interest?
The basis for her partnership interest will be $45,000.
B. What is Patti’s holding period of her partnership interest?
The holding period of the partnership interest includes the partner’s holding period for the 1232 assets contributed. The holding period starts the day after the taxpayer acquired the property and includes the day the property is sold. Three year is holding period - the same as the equipment in the hands of the partner.
C. What is the basis of the equipment in the hands of the partnership?
$45,000 is the basis.
D. What is the holding period of the equipment in the hands of the partnership?
3 years
E. how will the partnership depreciate the equipment in the year of contribution?
The partnership starts depreciating it in the third year.
52.
A. how much income must Barry report from BK Partnership?
Barry income:
Guaranteed payment $55,000
Ordinary income ($24,000*50%) $12,000 $67,000
B. What is the effect on Barry’s partnership basis?
Barry basis:
Income basis $12,000
Withdraw $10,000 $ 2,000 current Barry’s basis
Ch.15
47.
Under 80% rule, The basis of the stock in the hands of the shareholder is equal to the basis of the property contributed, plus any gain recognized, minus any boot received (including relief of liabilities). A. Contribution of property with a basis of $1,000 and a FMV of $1,400.
The should be $1,000 basis
B. Contribution of property with a basis of $3,000 and a FMV of $3,800. The stock