Question

DT and HC are equal partners. DT is the general partner and HC is the limited...

DT and HC are equal partners. DT is the general partner and HC is the limited partner. On January 1, 20xx, each had an adjusted basis in the Politics Partnership of $325,000. During 20xx, the partnership borrowed $40,000 on a recourse basis. In 20xx, the partnership had an operating loss of $675,000. What is the basis of each partner's interest at the end of 20xx? What is the loss for each partner?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
1.) Basis of each partner interest at end of 20xx:-
Adjusted basis on January 1,20xx        325,000
Add: Share of Recourse liability            20,000 (40,000 / 2 )
Basis of each partner interest at end of 20xx        345,000
2.) Loss for each partner        337,500 (675,000 / 2 )
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Tom and Jerry decide to start a Limited Partnership with Tom being the general partner and...
Tom and Jerry decide to start a Limited Partnership with Tom being the general partner and Jerry being the limited partner. Tom contributes cash of $20,000 to the partnership and Jerry contributes land with a basis of $20,000, fair market value of $40,000. The land is encumbered by a recourse mortgage of $20,000. Jerry’s basis in his partnership interest is: a. $30,000 b. $10,000 c. $40,000 d. $0
Three Partners Chris, Joe, and Harry form a partnership with Chris and Joe are general partners...
Three Partners Chris, Joe, and Harry form a partnership with Chris and Joe are general partners with each have a 40% interest, and Harry is a limited partner with a 20% interest (assume they satisfy the tests for substantial economic effect under Section 704(b)). Chris contributes $10,000, Joe contributes $20,000, and Harry contributes $40,000. The partnership borrows $30,000 on a recourse basis and uses the proceeds, along with each partner’s cash contributions, to purchase land for $100,000. What is each...
Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in...
Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $40,000 at the end of the current year, prior to any distribution. On December 31 they each receive an operating distribution. Coy receives $17,200 cash. Matt receives $5,040 cash and a parcel of land with a $12,160 fair market value and a $6,400 basis to the partnership. Matcoy has no debt or hot assets. b. What is Coy’s ending basis...
Caitlin, Robyn, and Hailee formed CR&H, a general partnership, as equal partners. Caitlin contributed $50,000 cash....
Caitlin, Robyn, and Hailee formed CR&H, a general partnership, as equal partners. Caitlin contributed $50,000 cash. Robyn contributed $20,000 cash and property with an adjusted basis of $20,000 and a FMV of $30,000. Hailee contributed property with an adjusted basis of $38,000 and a FMV of $50,000. The partnership had $60,000 in ordinary income for the year. What is Robyn's ending tax capital account? $40,000 $50,000 $60,000 $70,000
21. Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On...
21. Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe’s adjusted basis in his partnership interest is $10,000 and Jane’s adjusted basis is $2,000. During the year, Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following partnership activity for the year, determine each partner’s adjusted basis in Quick and Reddy at the end of the taxable year.
A general partnership had the following information at the end of each of the years for...
A general partnership had the following information at the end of each of the years for 20X0 and 20X1. Current liabilities are $20,000 for 20X0 and $20,000 for 20X1. Long term liabilities for 20X0 of $50,000 and $50,000 for 20X1 and net income(or loss) 20X0 is N/A and 20X1 ($40,000-loss). All liabilities are recourse debt and partner M guaranteed all the long term liabilities. M, a 10% owner, had a $10,000 basis in the partnership at the end of 20X0....
1. Danielle is a partner in, and sales manager for, DG Partners, a domestic business that...
1. Danielle is a partner in, and sales manager for, DG Partners, a domestic business that is not a specified service trade or business. During the tax year, she receives guaranteed payments of $250,000 from DG Partners for her services to the partnership as its sales manager. In addition, her distributive share of DG Partners' ordinary income (its only item of income or loss) was $175,000. What is Danielle's qualified business income? a. $175,000. b. $-0-. c. $250,000. d. $425,000....
Carmelo Jones is one of the two general partners in The house Warehouse, an accrual method...
Carmelo Jones is one of the two general partners in The house Warehouse, an accrual method (for both financial and tax reporting purposes) limited partnership which has over 3,000 limited partners all of which are passive investors. Carmelo wants to retire and therefore, wants out of the partnership. He currently owns a 12% interest in the limited partnership with an outside basis of $425,000. In exchange for his partnership interest, the other general partner offers him: $10,000 cash, internally generated...
Partnerships                                   Determine whether the following statements are True...
Partnerships                                   Determine whether the following statements are True or False:                           TRUE       FALSE                                    1. Guaranteed payments to partners do not reduce the ordinary income of the partnership.    2. Non recourse borrowing of a partnership increases threat risk basis of each partner in interest in the partnership.    3. Tax exempt interest income decreases the basis of...
Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven...
Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $50,000 basis in their partnership interests. On December 31, the partnership makes a pro-rata operating distribution to Heidi of $60,000 cash. What is the amount and character of Heidi's recognized gain or loss? What is Heidi's remaining basis in HT?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT