Latest Questions & Answers

Q: Paolo is a 50% partner in the Capri Partnership and has

Paolo is a 50% partner in the Capri Partnership and has decided to terminate his partnership interest. Paolo is considering two options as potential exit strategies. The first is to sell his partnersh...

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Q: What are “hot assets” and why are they important in

What are “hot assets” and why are they important in the sale of a partnership interest?

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Q: Simon is a 30% partner in the SBD Partnership, a

Simon is a 30% partner in the SBD Partnership, a calendar-year-end entity. As of the end of this year, Simon has an outside basis in his interest in SBD of $188,000, which includes his share of the $6...

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Q: Are special basis adjustments mandatory? If so, when?

Are special basis adjustments mandatory? If so, when?

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Q: Helen’s basis in Haywood Partnership is $270,000. Haywood

Helen’s basis in Haywood Partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet jus...

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Q: Erin’s basis in her Kiybron Partnership interest is $3,300

Erin’s basis in her Kiybron Partnership interest is $3,300. Erin receives a distribution of $2,200 cash from Kiybron in complete liquidation of her interest. Kiybron is an equal partnership with the f...

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Q: Cliff’s basis in his Aero Partnership interest is $11,000

Cliff’s basis in his Aero Partnership interest is $11,000. Cliff receives a distribution of $22,000 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the follow...

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Q: Michelle pays $120,000 cash for Brittany’s one-third

Michelle pays $120,000 cash for Brittany’s one-third interest in the Westlake Partnership. Just prior to the sale, Brittany’s basis in Westlake is $96,000. Westlake reports the following balance sheet...

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Q: Under what circumstances will a partner recognize a gain from an operating

Under what circumstances will a partner recognize a gain from an operating distribution?

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Q: Bella Partnership is an equal partnership in which each of the partners

Bella Partnership is an equal partnership in which each of the partners has a basis in his partnership interest of $10,000. Bella reports the following balance sheet: a. Identify the “hot assets” if T...

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