Elaine's original basis in the Hornbeam Partnership was $49,600. Her share of the taxable income from the partnership since she purchased the interest has been $198,400, and Elaine has received $148,800 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. Calculate Elaine's current basis in her partnership interest.

Lear is to become a partner in the WS partnership by paying $80,000 in cash to the business. At present, the capital balance for Hamlet is $70,000 and for MacBeth is $40,000. Hamlet and MacBeth share profits on a 7:3 basis. Lear is acquiring 40 percent of the new partnership. 1.If the goodwill method is applied, what will the three capital balances be following the payment by Lear? 2.  If the bonus method is applied, what will the three capital balances be following the payment by Lear?

Mike and Melissa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $136,000), and Melissa contributes the assets of her sole proprietorship (value of $140,000, adjusted basis of $115,000). What are the tax issues that should be considered by Mike, Melissa, and MM on the formation of the partnership? What are the tax consequences of these issues? Continue with the facts presented in Problem 31. Mike purchased the land (value of $100,000; adjusted basis of $136,000) several years ago as an investment (capital) asset. Mike and MM LLC are trying to decide between two alternatives. In Alternative 1, Mike will contribute the land to the LLC. MM will use the property as a § 1231 asset (a parking lot) and then sell it in six years at an estimated $100,000 price. (Disregard any potential improvements to the land.) In Alternative 2, Mike will sell the land immediately to a third party and contribute to MM the $100,000…

The TJ Partnership has two equal​ partners, Troy and John. In the current​ year, the partnership earns $300,000 of ordinary income​ (all business) and recognizes a $15,400 ​long-term capital gain. Troy is married, files a joint​ return, and claims a standard deduction. Other than partnership​ items, Troy has only a $6,400 ​short-term capital loss at the individual level. What is Troy's taxable income? ​

Pablo has a $194,600 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate current distribution, cash of $77,840, cash basis receivables with an inside basis of $0 and a fair market value of $48,650, and land with a basis and fair market value to the partnership of $252,980. If an amount is zero, enter "0". How much is Pablo's realized and recognized gain on the distribution? Pablo has a realized gain on the distribution of $ b. and a recognized gain of $ What is Pablo's basis in the receivables, land, and partnership interest following the distribution? The receivables have a basis of $ and the land has a basis of $ to Pablo. His basis in his partnership interest after the distribution is $

Cindy has a $4,000 basis in the partnership. She receives (if it does not say liquidating, it is a current distribution) property with a $4,500 basis and FMV of $6,000. What is her basis?

Vicente has a 30% participation in partnership profits and losses. Vicente's capital account has a net decrease of P120,000 during the calendar year 2020. During 2020, Vicente withdrew P260,000 (charged against his capital account) and contributed property valued at P50,000 to the partnership. 8) What was the profit of the partnership for year 2020? On January 1, 2020, Palma and Suarez decided to form a partnership. At the end of the year, the partnership made a profit of P120,000. The capital accounts of the partnership showed the following transactions: Palma, Capital Р 50,000 50,000 Suarez, Capital Apr. 1 Sept. 1 Jan. 1 P240,000 100,000 50,000 40,000 Sept. 1 P 30,000 50,000 Jan. 1 P225,000 45,000 30,000 June 1 Dec. 1 Oct. 1 Aug. 1 Oct. 1 Dec. 1 Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is allocated in a ratio of 6:4 between Palma and Suarez, respectively. Required: 9) Compute the interest to be given to Palma and Suarez,…

Katherine invested $80,000 this year to purchase a 30% interest in the KLM Partnership. The partnership reported $200,000 of net income from operations, a $2,000 short-term capital loss, and a $10,000 charitable In addition, the partnership distributed $20,000 to Katherine and $10,000 each to partners Lauren and Missy. Assuming the partnership has no beginning or ending liabilities, what is Katherine's basis in her partnership interest at the end of the year?

Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $108,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,000 and was appraised at $180,000. The land was also encumbered with a $72,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,300 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:  Sales revenue $ 470,000 Cost of goods sold 450,000 Operating expenses 55,000 Long-term capital gains 2,100 §1231 gains 900 Charitable contributions 300 Municipal bond interest 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) 3,000   a. Compute the adjusted basis of each partner’s interest in the partnership…