Basis

Question 1

Basis of contributing partner’s initial basis

Answer 1

1. Cash
2. Property NBV
3. (Liabilities distributed)
4. Service FMV
5. Liability assumed

Question 2

Property basis acquired by gift

Answer 2

Historical cost of gift

Question 3

Tax basis for property distributed

Answer 3

FMV

Question 4

Difference between book and taxable income - addition to book income to get taxable income

Answer 4

1. Federal income tax expense
2. Excess capital losses over capital gain
3. Income items for tax purpose not included in book income (royalties, prepaid rent, interest, services fees)
4. Expenses deducted for book included in taxable income ( accrued contingent liabilities, premiums of key-person life, insurance policies, business gift to the extent exceed $25, charitable contribution, penalty)

Question 5

Difference between book income and taxable income- subtraction to get taxable income

Answer 5

1. Interest on municipal bond
2. Interest on life insurance proceeds on key-person life insurance)
3. Dividend received deduction
4. Charitable contribution carryover, different method used for computing depreciation