REGULATION - TAX Partnership
Terms
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TRUE OR FALSE
-as a general rule, no gain or loss is recognized by a parnter when there is a contribution of property to the partnership in excange for an interest in the partnership. - TRUE
- the holding period of a partnership interest acquired in exchange for a contributed capital asset begins on the date...
- the partner's holding period of the capital asset began
- a partnership may elect to deduct up to $_____ of organizational expenditures for the tax year in which the partnership begins business, with any remaining expenditures deducted ratably over the ________ period beginning with the month in which the partn
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-5000
-180 month -
partnership syndication fees may be:
1. deducted
2. amortized
3. capitalized
4. depreciated - -capitalized
-
PARTNERSHIP INCOME/LOSS:
-list items having special tax characteristics and are listed separately on Sch K -
-capital gains losses
-sec. 1231 gains and losses
-charitable contributions
-foreign income taxes
-sec 179 exp ded for recovery prop (ltd to $105k in 2005)
-interest, dividend, and royalty income
-interest expense on investment indebtedness
-net income (loss) from rental real estate activity
-net income (loss) from other rental activity -
PARTNERSHIP INCOME/LOSS:
-list items having no special tax characteristics and are netted in the computation of partnership ordinary income or loss: -
-sales less cost of goods sold
-business expenses such as wages, rents, bad debts, & repairs
-guaranteed payments to partners
-depreciation
-amortization (over 180 months or more) or partnership org and start-up expenditures
-sec 1245, 1250, etc. recapture - guaranteed pmts are pmts to a partner determined w/o regard to _____ ___ ___ _______.
- -income of the parternship
-
TRUE/FALSE
-guaranteed pmts are NOT deductible by the partnership and reported as income by the partners. -
-FALSE
-guaranteed pmts are deductible by the partnership - regarding a partner's tax basis... an increase in partnership liabilities will...
- -increase each partner's basis
- what is significant when partnerships are more than 50% owned by family members?
- -eg. if 1 family member owns 20% and the other 35% - each family member is considered to own the total 55% because of their blood relationship.