Misc. REG

Question 1

To which 3rd parties will an accountant who negligently prepares a client’s financial report be liable?

Answer 1

Any foreseen or known third party who relied on the report.

Question 2

Items not deductible on Schedule K for Partnerships (IFC 179 mnemonic)

Answer 2

• Investment Interest Expense
• Foreign Taxes Paid
• Charitable Contributions
• 179 Expense

Question 3

Items not included as income on Schedule K for Partnerships

PP1231 Mnemonic

Answer 3

• Passive Income
• Portfolio Income
• 1231 G/L

Question 4

Partnership Basis Calculation

Answer 4

Beg P-ship basis
\+ Cap. Contributions 
\+Share of Ord Income 
\+Capital Gains
\+Tax-Exempt Income