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Yaeger REG > Mod 37: Partnership Taxation Key Terms > Flashcards

Mod 37: Partnership Taxation Key Terms Flashcards

1
Q

Date of Basis of inventory sold by a partnership, when the inventory was contributed by the partner.

A

Basis goes from date contributed to partnership

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2
Q

What depended on the character of the property transferred is…

A

When your basis begins

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3
Q

Offering materials

A

Materials to sell partnership interest

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4
Q

4797

A

Recapture from sec. 1231 assets

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5
Q

3 items not deductible on form 1065 (partnership returns)

A

1 foreign income taxes paid

2 investment interest exp.

3 179 expenses

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6
Q

Partnership returns are considered…

A

Info returns

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7
Q

Guaranteed payments are considered…

A

Distributions of ordinary income

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8
Q

Investment interest on schedule K goes to…

A

Schedule A

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9
Q

Net earnings from self employment calculation

A

Net earnings from self-employment =

Guaranteed payments +/- ordinary income

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10
Q

Schedule K-1 percentage does not apply to…

A

Guaranteed payments to partners

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11
Q

Contributions to charities are…

A

Not used to arrive at ordinary income

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12
Q

Partner can only deduct share of ordinary loss up to their partnership basis, it is only deductible on your form…

A

1040

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13
Q

Unused partner losses are…

A

Carried forward indefinitely

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14
Q

5 item calculation to arrive at partner’s total basis

A 
Partner's beginning basis
\+ share of all income items
\+ contributions of property
- withdrawals of assets
\+ % of debts partner is personally liable for
= total basis
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15
Q

At risk basis:

This basis includes…

A

Share of liabilities you are personally liable for

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16
Q

Guaranteed payments are included on schedule K-1 to be taxed as…

A

Ordinary income to partners

17
Q

When calculating tax basis, guaranteed payments are…

A

Never used to arrive at basis

18
Q

A small partnership with average annual gross receipts of…2

A

1 $1 million or less over 3 year period

2 can use cash basis

19
Q

When a partner sells his interest, the selling price is known as…

A

Amount realized

20
Q

Amount realized calculation (for partner selling his interest)

A

Amount realized =

cash) + (assumption of old liabilities by new partner

21
Q

If the partner loses track of basis, the government allows you to calculate an alternative basis. What is the calculation?

A

Basis = capital account + share of liabilities

22
Q

Sale of a partnership interest is a sale of…

A

A capital asset

23
Q

751 gain is…

2) a 751 gain is treated as…

A

Percentage gain in non capital assets partner is selling

2) ordinary income

24
Q

Adjusted basis per books

A

Value of assets on cash basis

25
Q

Market value

A

Value if company is on accrual basis

26
Q

To calculate ordinary income of a company, you use…

A

Whatever basis the company is on

27
Q

Unrealized receivables are part of…

A

Sec. 751 ordinary income recapture

28
Q

Income in excess of a sec. 751 ordinary income recapture is…

A

Treated as a capital gain

29
Q

When the is a non liquidating distribution…

A

No loss is recognized

30
Q

When there is a liquidating distribution, there is a loss when only the following 3 items exist…

A

1 cash

2 inventory

3 unrealized receivables

31
Q

When there is a liquidating distribution, there is a loss when only cash, inventory or unrealized receivables are distributed for…

A

Less than your basis

32
Q

When there is a liquidating distribution, and cash, inventory and unrealized receivables are distributed with land or other property…

A

The distribution is tainted

33
Q

Taint

A

Causes loss not to be recognized

34
Q

Current, definition

A

Non liquidating distribution

35
Q

In both liquidating and non liquidating distributions, you have a gain if…

A

Cash exceeds basis of partnership interest

36
Q

For tax purposes, a retiring partner who receives retirement payments ceases to be regarded as a partner…

A

Only after partner’s entire interest in partnership is liquidated

37
Q

An electing large partnership (over 100 partners):

2 deductions

A

1 sec. 179 exp. deducted as ordinary income

2 charitable contributions limited to 10% limit

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