Question
I appreciate your explanation I found different answers on these questions and it can be confusing. 5. Jane O'Neil owns a 50% interest in partnership
I appreciate your explanation
I found different answers on these questions and it can be confusing.
5. Jane O'Neil owns a 50% interest in partnership J&B. She contributes a computer system with a FMV of $15,000 and an adjusted basis of $10,000 to the partnership. The partnership's basis in the computer system will be _________ and Jane's outside basis will increase by ___________. A. $10,000; $10,000. B. $10,000; $15,000. C. $15,000; $10,000. D. $15,000; $15,000.
6. For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and: A. The adjusted basis of qualified property B. The unadjusted basis of qualified property. C. The adjusted basis of qualified property and guaranteed payments made to the partners. D. The unadjusted basis of qualified property and guaranteed payments made to the partners in lieu of salary.
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