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31 Cards in this Set
- Front
- Back
What is the last date to modify a partnership agreement for a particular tax year? |
Date for filing the partnership return (EXCLUDING extensions) |
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Limited Partnership - What is the general partner liable for? |
Personally liable for partnership debts |
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Limited Partnership - What is the limited partner liable for? |
Only what they contributed to the partnership |
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What type of return is Form 1065? |
Informational return |
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Whatform states each partner’s distributive share? |
Schedule K-1 |
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1065 - When to file? |
15th day of the 4th month following the end of the calendar year |
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Form 7004? |
5 month extension of time to file |
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Liquidation at Partner's Death or Retirement - How do you treat their distributive earnings |
a. Include the partnership income through the endof the month in which they died as self-employmentincome b. If theydied part way though the year, add that income to their prior year distributiveearnings |
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How is a partnership distribution treated? |
TAx free return of capital |
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How is a guaranteed distribution to a partner treated? |
DEDUCTION |
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Filing Penalties - Failure to Furnish K-1 to Partner |
$100 for each Schedule K-1 for which failure occurs Intentional disregard = GREATER of $250 or 10% of amount to be reported |
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Filing Penalties - Late Filing |
$195 for each month or part of month (max 12) multiplied by # of partners (during any part of the yr) |
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basis limits-what share of a partnership loss can a partner generally claim? |
Only a loss up to the adjusted basis of her partnership interest
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Basis limits- how long may a partner carryforward disallowed losses and deductions due to the basis limit?
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Indefinitely
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How are unrealized receivables and inventory items treated?
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Taxed as ordinary income
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Basis for unrealized receivables (cash accounting)?
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0 |
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Partnership Distributions to Partners - must a partner pay taxes on the distributive share if the income is not distributed?
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Yes
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Partnership Distributions to Partners - how is a distribution generally treated? |
Tax-free return of capital to the partner
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Partnership Distributions to Partners - when does a partner recognize gain? |
Money included in the distribution exceeds the adjusted basis of the partnership interest
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Partnership Distributions to Partners - basis for distributed property? |
Adjusted basis to the partnership immediately before distribution
But--never more than the adjusted basis of her interest in the partnership, reduced by any money received in the same transaction |
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Partnership Distributions to Partners - limit on basis for distributed property? |
Yes
Cannot be more than the adjusted basis of the partner's interest in the partnership--reduced by any money received in the same transaction |
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Partnership Distributions to Partners - liquidating distributions When does a partner recognize loss on the distribution? |
1. Partner's entire interest is liquidated 2. Adjusted basis of the partner's interest in the partnership exceeds the distribution 3. Distribution is in Money, unrealized receivables, or inventory items. (No loss is recognized if any other property is distributed) |
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Partnership Distribution to Partners- order of allocation of basis?
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1. Unrealized receivables and inventory items 2. Properties--equal to the partnership's adjusted basis on the property |
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Guarnteed Payments - subject to income tax WH? |
No |
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Treatment of Health insurance premiums paid for partners? |
Guaranteed payments |
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What is the basis of a partnership interest? |
$ + AB of any property contributed |
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Which 3 items increase a partner's basis in the partnership interest?
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1. Additional contributions to the partnership (includes assumption of partnership liabilities) 2. Partner's distributive share of taxable and nontaxable partnership income 3. The partner's distributive share of the excess of the deductions for depletion over the basis of the property |
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Which 3 items decrease a partner's basis in the partnership interest?
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1. Money and adjusted basis of property distributed to the partner 2. Partner's distributive share of the partnership losses 3. Partner's share of nondeductible partnership expenses that are not capital expenditures 4. Partner's deduction for depletion for any partnership oil and gas wells |
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When does a partner's basis in a partnership include his share of a partnership liability?
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If the liability:
1. Creates or increases the partnership's basis in any of its assets 2. Gives rise to a current deduction to the partnership, or 3. Is nondeductible, noncapital expense of the partnership |
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Disposition of Partner's Interest: liquidation at partner's retirement or death
In exchange for her interest in partnership property? |
Treated as a distribution
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What is a guaranteed payment? |
Amount by which the minimum payment is MORE than partner's distributive share of partnership income |