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10 Cards in this Set
- Front
- Back
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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
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the holding period of a partnership interest acquired in exchange for a contributed capital asset begins on the date...
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the partner's holding period of the capital asset began
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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 partnership begins business
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-5000
-180 month |
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partnership syndication fees may be:
1. deducted 2. amortized 3. capitalized 4. depreciated |
-capitalized
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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 |
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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 |
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guaranteed pmts are pmts to a partner determined w/o regard to _____ ___ ___ _______.
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-income of the parternship
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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 |
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regarding a partner's tax basis... an increase in partnership liabilities will...
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-increase each partner's basis
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what is significant when partnerships are more than 50% owned by family members?
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-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.
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