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Alex and Betty own AB Partnership. The Book and Tax balance sheet are below. Chuck has contributed services to the partnership for a 20% interest
| Alex and Betty own AB Partnership. The Book and Tax balance sheet are below. Chuck has contributed services to the partnership for a 20% interest in the partnership. The partner ratios are below after the admittance of Chuck. | |||||||
| Calculate the Income to Chuck and the deductions to the partners. | |||||||
| Prepare a new Tax and Book Balance sheet after the admittance of Chuck | |||||||
| Alex | Betty | Chuck | |||||
| Profit | 40% | 40% | 20% | ||||
| Loss | 40% | 40% | 20% | ||||
| Capital | 40% | 40% | 20% | ||||
| Tax Basis | Book - FMV | ||||||
| Cash | 300,000 | 300,000 | |||||
| Building - Alex | 375,000 | 440,000 | |||||
| Building - Betty | 410,000 | 525,000 | |||||
| Land | 130,000 | 150,000 | |||||
| Assets | 1,215,000 | 1,415,000 | |||||
| Recourse Liability | 500,000 | 500,000 | |||||
| Capital | |||||||
| Alex | 315,000 | 457,500 | |||||
| Betty | 400,000 | 457,500 | |||||
| Liab & Capital | 1,215,000 | 1,415,000 | |||||
| Alex and Betty own AB Partnership. The Book and Tax balance sheet are below. Chuck has contributed services to the partnership for a 20% interest in the partnership. The partner ratios are below after the admittance of Chuck. | |||||||
| Calculate the Income to Chuck and the deductions to the partners. | |||||||
| Prepare a new Tax and Book Balance sheet after the admittance of Chuck | |||||||
| Alex | Betty | Chuck | |||||
| Profit | 40% | 40% | 20% | ||||
| Loss | 40% | 40% | 20% | ||||
| Capital | 40% | 40% | 20% | ||||
| Tax Basis | Book - FMV | ||||||
| Cash | 300,000 | 300,000 | |||||
| Building - Alex | 375,000 | 440,000 | |||||
| Building - Betty | 410,000 | 525,000 | |||||
| Land | 130,000 | 150,000 | |||||
| Assets | 1,215,000 | 1,415,000 | |||||
| Recourse Liability | 500,000 | 500,000 | |||||
| Capital | |||||||
| Alex | 315,000 | 457,500 | |||||
| Betty | 400,000 | 457,500 | |||||
| Liab & Capital | 1,215,000 | 1,415,000 | |||||
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
