Partnership Taxation This project covers general partnership basis issues includ

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Partnership Taxation This project covers general partnership basis issues includ

Partnership Taxation
This project covers general partnership basis issues including computation of partners’ adjusted basis, determination of current-year tax position, preparation of tax forms, and creation of a memo to the partners with an analysis of their current-year tax issues and changes to basis.
In the current year, Mary, Andrew, and Paul formed Venezia General Partnership. Mary contributed $55,000 cash, Andrew contributed $55,000, and Paul contributed land with a cash basis of $70,000 and a fair market value of $180,000. The partnership assumed a $70,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year, Venezia made a $7,000 payment on the mortgage. Mary, Andrew, and Paul will split all profits and losses equally.
Current-year operations had the following results:
Sales      revenue: $260,000
Cost      of goods sold: $205,000
Operating      expenses: $35,000
Long-term      capital gains: $1,200
Section      1231 Gains: $450
Charitable      contributions: $350
Municipal      bond interest: $150
Salary      paid as a guaranteed payment to Andrew (not included in expense): $1,500
Part A: Determine Basis
Using      Thomson Reuters, find a court case discussing partners’ basis in the      partnership interest. Summarize the court case and tax law relating to      basis calculations.
Using      the information summarized, determine Mary’s, Andrew’s, and Paul’s initial      basis in the partnership interest and the basis for each partner at the      end of the current year. These calculations should be 1 page.
Part A Submission Requirements:
Your      summary of the court case, summary of tax law relating to basis      calculations, and the specified partners’ basis calculations should be 5      pages not including the required cover and reference pages. Note, the      basis calculations should not be more than 1 page.
Support      your paper with at least 6 scholarly, legislative, or court references (of      which the textbook may be one). 
Format      your paper according to the APA format
Part B: Tax Form Preparation
Prepare      Schedule K for the current year from page 4 of Form 1065.
Prepare      Andrew’s Schedule K-1.
Part B Submission Requirements:
The      tax forms required for Part B should be submitted as PDF documents.
Part C: Client Letter
Prepare a letter to Andrew summarizing her current year tax issues.
Part C Submission Requirements:
Your      letter should be 3 pages not including the required cover and reference      pages.
Support      your paper with at least 6 scholarly, legislative, or court references (of      which the textbook may be one). 
Your submission should be 10 pages in length and conform to the APA format. Include at least 8 scholarly references in addition to the course textbook.  
chapters 27 & 28 in South-Western Federal Taxation 2019
Imposition of Tax, 26 U.S. Code § 641
Imposition of Tax, 26 U.S. Code § 2501
McCormick, P. (2017). Key estate planning concepts for international clients. Estate Planning, 44(6), 18-21.
Saylor, T. (2017, April). How to avoid inheritance mistakes. Journal of Accountancy. Retrieved from https://www.journalofaccountancy.com/newsletters/2017/apr/avoid-inheritance-mistakes.html
IRS.gov. (2018a). Definition of a trust. Internal Revenue Service. Retrieved from https://www.irs.gov/charities-non-profits/definition-of-a-trust
IRS.gov. (2018b). Estate tax. Internal Revenue Service. Retrieved from https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
Tax Cuts and Jobs Act of 2017, Pub. L. 115-97. (2017). Retrieved from https://www.congress.gov/115/bills/hr1/BILLS-115hr1enr.pdf
Vanguard. (2018, February 26). Tax and estate planning in a changing environment: The new rules’ effect on estate and gift taxes. [Video file]. Retrieved from: https://youtu.be/3gL1TyD0xJ4

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This project covers general partnership basis issues includ appeared first on nursing writers.

 

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