Question
MRG, LP. operated a lumber distribution center since 1999. MRG contributed accounts receivable of $1,000,000 and accounts payable of $500,000. MRG was a cash basis
MRG, LP. operated a lumber distribution center since 1999. MRG contributed accounts receivable of $1,000,000 and accounts payable of $500,000. MRG was a cash basis taxpayer. MRG received 500 shares of voting common stock. MRG LP was owned by 2 individuals, Fred and Maryann. Fred and Maryann retired to the Dominican Republic but are US citizens. The accounts payable related to salaries, business cell phone expenses, and utilities.
Explain the significance of Fred and Maryann living in Dominican Republic and how they are impacted for federal income tax purposes as the owners of MRG LP.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started