riff and raff enter into partnership agreement. However, the activity. that they intend to undertake as the partnership business is illegal at common law and under commonwealth taxation legistation. a) Explain the implications of the illegal purpose. b) Explain the rights of a trustee to be paid from the trust for work done or expenses incurred

riff and raff enter into partnership agreement. However, the activity. that they intend to undertake as the partnership business is illegal at common law and under commonwealth taxation legistation. a) Explain the implications of the illegal purpose. b) Explain the rights of a trustee to be paid from the trust for work done or expenses incurred

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 13DQ

See similar textbooks

Similar questions

Which one of the following statements regarding partnership taxation is incorrect? a.Partnership income is comprised of ordinary partnership income or loss and separately stated items. b.A partnership is required to file a return with the IRS. c.A partner's profit-sharing percentage may differ from the partner's loss-sharing percentage. d.A partnership is a tax-paying entity for Federal income tax purposes.
Riff and Raff enter into a partnership agreement. However, the activity that they intend to undertake as the partnership business is illegal at common law and under commonwealth taxation legislation. Required: Explain the implications of the illegal purpose. b) Explain the rights of a trustee to be paid from the trust for work done or expenses incurred.
Which of the following statements is FALSE? A. A basis adjustment under 734(b) attributable to a partnership distribution is designed to protect the partners who did not receive the distribution from recognizing built-in gains that belong to the distributee partner. B. In order to determine the correct tax result for payments to a deceased or retired partner, one must first determine the retiring/deceased partner's share of the fair market value of partnership assets. Unrealized receivables are not considered an "asset" for this purpose if capital is not material income producing factor (such as a law firm). C. Payments to a retiring partner that compensate the partner for his share of the fair market value of partnership property are treated as guaranteed payments. D. All of the above statements are TRUE
Which of the following is an element of the requirement that partnership allocations must have substantial economic effect? If an allocation of income, loss, or deduction is made for tax purposes, a similar allocation must be made for partnership book purposes so the partner's capital account (and rights to partnership capital) reflect a corresponding increase or decrease. Liquidations must be made in accordance with partner's capital accounts and a partner with a negative capital account must have the obligation to restore the capital account deficit in case of liquidation. Even if corresponding allocations are made for tax purposes and book purposes, those allocations must be made for economic reasons independent of minimizing taxes based on the partners' individual tax situations. All of these are elements of substantial economic effect
A partnership is treated as a separate entity with respect to a.the paying of income taxes. b.its ability to exist independent of its owners. c.passing it on to heirs. d.bankruptcy. e.having its own assets and liabilities.
file a case against a partnership, without impleading the partners and the partnership is then held liable by the court, will the partners' If you personal assests be also held liable, if the partnerships assets are insufficient?
If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is:a. Taxable as a corporationb. Is not allowed by lawc. A general professional partnershipd. Is exempted from taxation as the partners ae the ones liable for the tax
Which of the following is not a characteristic of a partnership? A. The partnership itself pays no income taxes. B. It is easy to form a partnership. C. Any partner can be held personally liable for all debts of the business. D. A partnership requires written Articles of Partnership. E. Each partner has the power to obligate the partnership for liabilities.
A covered member creates a blind trust and transfers assets into the blind trust. The covered member will not supervise or participate in the trust’s investment decisions during the term of the trust. if the covered member retains the right to amend or revoke the trust, Will the trust and the underlying assets be considered the covered member’s direct financial interests? Yes or No
Which of the following regarding partnership taxation is INCORRECT? Question 16 options: A partnership is a tax paying entity for Federal income tax purposes. Partnership income is comprised of ordinary partnership income or loss and separately stated items A partnership is required to file a return with the IRS. A partner’s profit-sharing percent may differ from the partner’s loss-sharing percent. All of these statements are correct.
If Nicanor, a CPA, established a partnership with Inday, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is: Choices Is not allowed by law Is exempted from taxation as the partners are the ones liable for the tax A general professional partnership Taxable as a corporation
Which of the following factor(s) is/are considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment? Whether the employer knew that the act would involve the commission of a serious crime. O Whether the employer authorized the employee's act and whether the employer provided the tools by which the act occurred, but not whether the employer knew that the act would involve the commission of a serious crime. Whether the employer provided the tools by which the act occurred. O Whether the employer authorized the employee's act. Whether the employer authorized the employee's act, whether the employer provided the tools by which the act occurred, and whether the employer knew that the act would involve the commission of a serious crime.