Parnerships

Question 1

What is Recourse debt

Answer 1

I-AP, bank loans
II- General partners are 100% liable for debt
III - Limited partners 0%

Question 2

Municipal Bond

Answer 2

$0 tax but partnership it will make partnership basis go up

Question 3

Investment at a partnership

Answer 3

Sold at a gain Is separately stated income and pay tax

Sold at a loss $0 if related party

Fines & penalties Not taxable, but decreases basis

Dividends from domestic corpo are separately stated and taxable

Cash distributions to partners lowest basics - not included income

Question 4

Schedule K - Tax question

Answer 4

General partners or limited partners do not matter
** We only need income statement not balance sheet for tax question