Outline the tax consequences

Assignment Help Accounting Basics

Reference no: EM13762340

Timothy is a 35 percent partner in the Total Partnership, a calendar-year-end entity. Timothy has an outside basis in his interest in Total of $198,000, which includes his share of the $45,000 of partnership liabilities. On December 31, Total makes a proportionate distribution of the following assets to Timothy:

	Basis	FMV
Cash	$50,000	$50,000
Inventory	65,000	75,000
Land	50,000	65,000
Totals	$165,000	$180,000

For an operating distribution, outline the tax consequences (amount and character of recognized gain or loss, basis in distributed assets) of the distribution to Timothy.
For a liquidating distribution, outline the tax consequences (amount and character of recognized gain or loss, basis in distributed assets) of the distribution to Timothy.
Discuss the similarities and differences between the tax consequences of the operating distribution and the tax consequences of the liquidation distribution.

Reference no: EM13762340

Questions Cloud

Computer peripheral devices : Identify and explain key trends that are occurring in computer peripheral devices? How do these trends affect business uses of computers?Discuss important computer hardware developments that you expect to happen in the next 10 years? How will thes..

The correlation analysis statistic : The results of a nursing or health research study in which correlation analysis is used try using health research and correlation as search terms.

Write an essay on who painted the lion : Who Painted the Lion? Chaucer's Wife of Bath, as she describes her own life and marriages in her prologue, points out the problem that stories about women seem to have been mostly written by men

Compute the combined tax liability : Avis's taxable income for the year is $300,000 and Best's taxable income for the year is $425,000. For each of the scenarios provided, (a) state if a control group has been created and, if so, define the controlled and (b) compute the combined tax..

Outline the tax consequences : For an operating distribution, outline the tax consequences (amount and character of recognized gain or loss, basis in distributed assets) of the distribution to Timothy.

Describe a file system : Theory-long answer question. Describe how a file system could be implemented using a collection of inodes and some variant of a B tree. 500-1000 words. Be sure to consider: unallocated space, bad allocations, lost and found, root directories, s..

What are the strengths of estimates within an organization : When working on a project estimating the duration of each part of the work is very important. What are the strengths of estimates within an organization having consistent estimates? What are the weaknesses?

What chiefly distinguishes modern times from previous times : What chiefly distinguishes modern times from previous times? Why is it erroneous to agrue that the nature of the two sexes makes their present relationship appropriate?

Dating and timing of physician orders : Prepare a 2-3 page report describing, comparing and/or contrasting the specific standards that apply to the authentication, dating and timing of physician orders, and make a recommendation as to what the policy for your hospital should be.

User Account

All Pages