Latest Questions & Answers

Q: When a corporation’s Selection is terminated mid-year, what options

When a corporation’s Selection is terminated mid-year, what options does the corporation have for allocating the annual income between the S corporation short year and the C corporation short year?

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Q: Rufus is a one-quarter partner in the Adventure Partnership.

Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest. Adventure has only c...

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Q: Two years ago, Kimberly became a 30 percent partner in the

Two years ago, Kimberly became a 30 percent partner in the KST Partnership with a contribution of investment land with a $10,000 basis and $16,000 fair market value. On January 2 of this year, Kimberl...

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Q: Pam has a $27,000 basis (including her share

Pam has a $27,000 basis (including her share of debt) in her 50% partnership interest in the Meddoc partnership before receiving any distributions. This year Meddoc makes a current distribution to Pam...

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Q: Karen has a $68,000 basis in her 50%

Karen has a $68,000 basis in her 50% partnership interest in the KD Partnership before receiving a current distribution of $6,000 cash and land with a fair market value of $35,000 and a basis to the p...

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Q: Describe the circumstances in which an S election may be involuntarily terminated

Describe the circumstances in which an S election may be involuntarily terminated.

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Q: Adam and Alyssa are equal partners in the PartiPilo Partnership. The

Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following b...

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Q: Justin and Lauren are equal partners in the PJenn Partnership. The

Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bas...

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Q: Explain how a partner’s debt relief affects his amount realized in a

Explain how a partner’s debt relief affects his amount realized in a sale of partnership interest.

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Q: Coy and Matt are equal partners in the Matcoy Partnership. Each

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, th...

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