MULTIPLE PROBLEM QUESTION (Please do explain also why that is your answer)

1. Bob contributed to the AlphaBeta Partnership, a general partnership, a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. The AlphaBeta Partnership will assume the mortgage on the building. At the same time, Al contributed to AlphaBeta Partnership cash of $30,000 in exchange for the other 50 percent interest in the AlphaBeta Partnership. In addition to the section or sections that are relevant under question 5, above, which of the following Code Sections is or are also relevant to the determination of whether or not Bob recognizes any gain or loss on this transaction? 

a. Only Code Section 751 .   b. Only Code Sections 751(b), 733, and 705(a).   c. Code Sections 751(b), 733, 705(a) and 731(a).   d. None of the above.

 

2. Bob contributed to the AlphaBeta Partnership, a general partnership, a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building. At the same time, Al contributed to AlphaBeta Partnership cash of $30,000 in exchange for the other 50 percent interest in the AlphaBeta Partnership. Which of the following Code Sections is or are relevant to the determination of Bob's basis in his partnership interest upon completion of this transaction? 

a. Only Code Section 722.    b. Only Code Section 1012(a).    c. Only Code Sections 1012(a) and 722.    d. Code Sections 1012(a), 722, and 705(a). 

3. Al contributed to the AlphaBeta Partnership, a general partnership, cash of $30,000 in exchange for a 50 percent interest in the Alpha Partnership. At the same time, Bob contributed to the AlphaBeta Partnership a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. The AlphaBeta Partnership will assume the mortgage on the building. Which of the following Code Sections is or are relevant to the determination of whether or not Al recognizes gain or loss on this transaction?

 a. Only Code Section 722.   b. Only Code Section 1001(c).   c. Code Section 723 and Code Section 1001(a).   d. Code Section 1001(c) and Code Section 721(a). 

4. Al contributed to the AlphaBeta Partnership, a general partnership, cash of $30,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. At the same time, Bob contributed to the AlphaBeta Partnership a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for a 50 percent interest in the AlphaBeta Partnership. The AlphaBeta Partnership will assume the mortgage on the building. Which of the following Code Sections is or are relevant to the determination of Bob's basis in his partnership interest upon completion of this transaction? 

a. Only Code Section 722.    b. Only Code Section 1012(a).    c. Only Code Sections 1012(a) and 722.    d. Code Sections 1012(a), 722, and 752(a). 

5. A taxpayer is considered to be at risk under the at-risk rules for which of the following and under what section of the Code? 

a. money borrowed by another for which payment is guaranteed by the taxpayer; Code Section 469(a).

 b. money borrowed by the taxpayer from another who has an equity interest in the taxpayer?s business; Code Section 61.

 c. qualified nonrecourse financing; Code Section 469.

 d. qualified nonrecourse financing; Code Section _____(if you conclude none of a, b, or c is correct, write in the citation for the correct section of the Internal Revenue Code, including the subsection and paragraph, if applicable).

 6. The taxpayer owns a parcel of undeveloped real estate that has a basis to the taxpayer of $200,000. Taxpayer purchased the real estate in 2003 for investment. The taxpayer sold the property to his nephew on January 10, 2017, for $80,000. Is the loss deductible by the taxpayer, and what Code sections are applicable to the transaction? Assume the taxpayer has no other capital gains or losses for the year. 

a. No amount of the loss is not deductible because the sale is to a related party; Code Section 1001(a) and Code Section 267(a) and (d). 

b. The loss is deductible; Code Section 469(c)(7).

 c. $3,000 of the loss is deductible in the current year; Code Sections 1001(a) and 1211(b). 

d. None of the above answers is correct. 

7. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation's cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. Which of the following Code Sections is or are relevant to the determination of whether or not Bob recognizes gain or loss on this transaction? 

a. Code Section 721.     b. Code Sections 1031 and 1001.      c. Only Code Section 1001.     d. Code Sections 351 and 1001. 

8. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation's cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. In addition to the section or sections that are or are relevant under question 12, above, which of the following Code Sections, if any, is also relevant to the determination of whether or not Bob recognizes any gain or loss on this transaction?

 a. Only Code Section 752(b).     b. Code Section 362.     c. Code Section 357(c).     d. None of the above.

 14. Bob contributed to AlphaBeta Corporation a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Al contributed to AlphaBeta Corporation's cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. Which of the following Code Sections is or are relevant to the determination of Bob's basis in his AlphaBeta Corporation stock as the result of this transaction? 

a. Only Code Section 722.    b. Only Code Section 1012(a).     c. Code Sections 1012(a) and 358(a). d. None of the choices

Please note if your answer is none then provide an explanation why none. Thank you.