With respect to guaranteed payments

Assignment Help Financial Accounting

Reference no: EM13790640

Part 1: True/False

If a partner contributes property subject to a liability to the partnership, the partner recognizes gain realized to the extent of the liability. ____

The amount a partner may deduct in the current tax year for the distributive share of partnership ordinary loss is limited to the partner’s adjusted basis in his/her interest in the partnership.____

A partner’s basis in his/her partnership interest is generally increased by the fair market value of contributed property if it is not subject to liabilities.____

Payments to partners for services customarily performed by a partner and computed by reference to partnership income are guaranteed to partners.____

Part 2: With respect to guaranteed payments,

Must it be separately stated on Form K-1? Yes/No

Is it deductible in computing ordinary income? Yes/No

Does it reduce the partner’s basis in their interest in the partnership? Yes/No

Part 3: With respect to long-term capital losses,

Must it be separately stated on Form K-1? Yes/No

Is it deductible in computing ordinary income? Yes/No

Does it reduce the partner’s basis in their interest in the partnership? Yes/No

Reference no: EM13790640

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