Tropical Fruit Partnership is a calendar year general partnership with the following current year information: Operating loss $(1,800,000) Liabilities: Note payable, Big Bank 180,000 Note payable, Pineapple (individual) 120,000 On January 1 Coconut bought 60% of Tropical Fruit Partnership for $270,000. How much of the operating loss may Coconut deduct currently? Assume the excess business loss limitation does not apply. $342.000 $450,000 $480.000 $390,000 Lemon, Lime, and Orange, three cash method, calendar year individuals, form Starburst General Partnership to create fruit candies. Before forming this partnership, they each had their own sole proprietorship. The partners contribute the following property (in each case worth $1,800 net of liabilities) in exchange for equal 1/3 interests in the partnership's capital, profits and losses (see the table below of property contributed by each partner). The partnership assumes all liabilities encumbering the contributed assets. Assume that the partners are responsible for an equal share of the partnership's liabilities. What is the most that any specific partner recognizes on these transactions? Lemon contributes land with a fair market value of $3,870, which is encumbered by a recourse mortgage of $2,430. Lemon has held the land for several years as an investment, and his basis in the land is $900. Lemon also contributes $360 in cash. Lime contributes a building, a 1231 asset, with a value of $2,340 in which Lime has an adjusted basis of $1,170. The building was purchased several years ago by Lime and is subject to a recourse mortgage $540. Orange contributes zero basis accounts receivable from his business worth $3,150 and assigns his accounts payable of $1,350 to the partnership. $180 $540 $900 $0 Tropical Fruit Partnership is a calendar year general partnership with the following current year information: Operating loss $(1,800,000) Liabilities: Note payable, Big Bank 180,000 Note payable, Pineapple (individual) 120,000 On January 1 Coconut bought 60% of Tropical Fruit Partnership for $270,000. How much of the operating loss may Coconut deduct currently? Assume the excess business loss limitation does not apply. $342.000 $450,000 $480.000 $390,000 Lemon, Lime, and Orange, three cash method, calendar year individuals, form Starburst General Partnership to create fruit candies. Before forming this partnership, they each had their own sole proprietorship. The partners contribute the following property (in each case worth $1,800 net of liabilities) in exchange for equal 1/3 interests in the partnership's capital, profits and losses (see the table below of property contributed by each partner). The partnership assumes all liabilities encumbering the contributed assets. Assume that the partners are responsible for an equal share of the partnership's liabilities. What is the most that any specific partner recognizes on these transactions? Lemon contributes land with a fair market value of $3,870, which is encumbered by a recourse mortgage of $2,430. Lemon has held the land for several years as an investment, and his basis in the land is $900. Lemon also contributes $360 in cash. Lime contributes a building, a 1231 asset, with a value of $2,340 in which Lime has an adjusted basis of $1,170. The building was purchased several years ago by Lime and is subject to a recourse mortgage $540. Orange contributes zero basis accounts receivable from his business worth $3,150 and assigns his accounts payable of $1,350 to the partnership. $180 $540 $900 $0
