Explain the similarities and differences between tax

Reference no: EM13476221

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

Answers:

1) 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.

2) 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.

3) Discuss the similarities and differences between the tax consequences of the operating distribution and the tax consequences of the liquidation distribution.

Reference no: EM13476221

Questions Cloud

Explain the history or background of the illness including : 1.explain the history or background of the illness including myths misconceptions and past treatments.2.describe the

If labor costs rise you may consider substituting capital : as a manager how would you decide how many workers to hire? what factors might play a role in your decision?with

Describe function amp structure of male amp female : audiencereader high school students and their parentsinclude the following describe functionampstructure of male amp

1list and describe essential phone skills 2discuss : 1.list and describe essential phone skills. 2.discuss different voice mail systems. 3.describe the positive and

Explain the similarities and differences between tax : timothy is a 35 percent partner in the total partnership a calendar-year-end entity. timothy has an outside basis in

Document at least three primary sources and threenbsp : write a one to twonbsp page research proposal in which younbsp1. identify the topic you selected and explain two

What are the most significant issues you presently face in : there is a range of school models that exist within our school communities all of which have the goal of helping

Compare and contrast federal government and colorados state : compare and contrast federal government and colorados state government. structure function and powers of each one.

Instructions for answering these 3 questions answer with a : 1identify and discuss how the conventions of epic poetry are used in the prologue.2 discuss grendals introduction - how

User Account

All Pages