elect to be taxed as a sole proprietor if there is only one shareholder d. Malcolm, a dealer in securities, is a 60 percent owner of the Real Partnership which on July 1, 2012, sold to him Acme Securities which it had held as an investment for three years. During the year, the partnership had the following items of income: partnership ordinary income, ,000; long-term capital gains, ,000; and tax-exempt income from municipal bond interest, ,000.
Under the check-the-box regulations a corporation incorporated under the law of any state can a. elect to be taxed as a limited liability company c. At the beginning of the 2012, their bases in their partnership interests were ,000 and ,000, respectively.
Which, if either, of the following statements is or are false? Tax exempt income received by a partnership, for example, municipal bond interest, does not increase a partner’s basis in his/her partnership interest because the income is not taxable. A partner who receives a current property distribution (other than cash), made pro rata to all the partners, will not have to report a gain with respect to the distribution.
Rex’s Partnership capital account was credited with ,000.
Lisa received cash of ,000 in complete liquidation of her entire interest.
Bobbie and Fran are partners in the Quick Freeze partnership, owning respectively 60 percent and 40 percent of the partnership's capital and profits. Bob contributed a building with an adjusted basis to Bob of ,000 and a fair market value of 0,000 subject to a mortgage of 0,000 in exchange for a 30 percent interest in the Alpha Partnership.
On January 2, 2013, Henry, Cabot, and Lodge formed a three-person equal partnership with Henry and Cabot each contributing 0,000 and Lodge contributing securities with a basis to him of ,000 and a fair market value of 0,000. On his 2012 federal income tax return, Malcolm should report income in the amount and character of: a. Their respective bases in their partnership interests at the end of 2012 were: a. not be taxed as anything other than a corporation 4. The basis of the securities to the Real Partnership was ,000, and the sales price to Malcolm was 0,000. The partnership distributed ,000 to Bobbie and ,000 to Fran.