Part 2 - short answer ( 65 points total) . 1. Tiger partnership has the following partners: What year end is Tiger required to use? ( 5 points) 2. Mark and John form Reid and Masselli, LLP, (R\&M), a partnership specializing in tax services. Both Mark and John are calendar-year taxpayers. However, they would like for R\&M to have a year-end of 4/30. Is this possible? Why or why not? ( 5 points) 3. Kelly is a partner in the JK partnership. She does not materially participate. Her adjusted outside basis in the partnership is $75,000. Of this, $25,000 comes from nonrecourse debt. Her share of partnership losses from JK is $60,000, and she has passive income of $25,000 from other activities. What is the maximum amount of the losses from JK that she is able to deduct? (5 points) 4. Timmy puts in cash of $15,000 for a 33% interest in Lassie Enterprises, a partnership. The other two partners put in $50,000 apiece for two equal interests. As part of the partnership agreement, Timmy also agrees to perform initial accounting services for the partnership, free of charge, for the first six months. How much income must Timmy recognize, if any, from this transaction, and what is his basis in the partnership interest? ( 5 points) AC 4152 tanam2 Spring 2010 5. Terry sells a piece of property with a basis of $70,000 to the TS partnership (which she has a 40% interest in) for $50,000. What are the tax consequences of this transaction to her? ( 5 points) 6. Tom is a partner in TXY partnership. His adjusted basis in the partnership is $30,000. During the year, he receives the following distributions: These are non-liquidating, proportionate, pro-rata distributions. a. What gain, if any, must Tom recognize on these distributions? (5 points) b. What is Tom's basis in the property? ( 5 points)