[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

@UCMCPA for ref. sake, this q is from Becker 2012 R2 HW – first q in Ind. Tax: Other Taxes

thanks

[Anonymous]

@UCMCPA for ref. sake, this q is from Becker 2012 R2 HW – first q in Ind. Tax: Other Taxes

thanks

[Anonymous]

i'm wondering what a schedule C is (in english for me- no tax background whatsoever)

[Anonymous]

i'm wondering what a schedule C is (in english for me- no tax background whatsoever)

[UCMCPA]

A schedule C is where a taxpayer that runs a business accounts for their income or loss. My dad is a jeweler and is self-employed. His tax return has a Schedule C on it. https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

A schedule C is where a taxpayer that runs a business accounts for their income or loss. My dad is a jeweler and is self-employed. His tax return has a Schedule C on it. https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Kenada]

Turner, Reed, and Sumner are equal partners in TRS partnership. Turner contributed land with an adjusted basis of $20,000 and a fair market value (FMV) of $50,000. Reed contributed equipment with an adjusted basis of $40,000 and an FMV of $50,000. Sumner provided services worth $50,000. What amount of income is recognized as a result of the transfers?

A. $50,000

B. $90,000

C. $60,000

D. $150,000

FAR 05/27/14; 786/110 - Done !

[Kenada]

Turner, Reed, and Sumner are equal partners in TRS partnership. Turner contributed land with an adjusted basis of $20,000 and a fair market value (FMV) of $50,000. Reed contributed equipment with an adjusted basis of $40,000 and an FMV of $50,000. Sumner provided services worth $50,000. What amount of income is recognized as a result of the transfers?

A. $50,000

B. $90,000

C. $60,000

D. $150,000

FAR 05/27/14; 786/110 - Done !

[Kenada]

ABC is a calendar-year partnership with three partners, Alan, Bob, and Cathy. The profits and losses are shared in proportion to each partner’s contributions. On January 1, the ratio was 90% for Alan, 5% for Bob, and 5% for Cathy. On December 1, Bob and Cathy each contributed additional amounts and the new profit and loss sharing ratios were 30% for Alan, 35% for Bob, and 35% for Cathy. For its tax year ending December 31, the partnership had a loss of $1,200. This loss occurred equally over the partnership’s tax year. How is the loss allocated?

A. Alan $1,020, Bob $90, Cathy $90.

B. Alan $360, Bob $420, Cathy $420.

C. Alan $720, Bob $240, Cathy $240.

D. Alan $1,080, Bob $60, Cathy $60.

FAR 05/27/14; 786/110 - Done !

[Kenada]

ABC is a calendar-year partnership with three partners, Alan, Bob, and Cathy. The profits and losses are shared in proportion to each partner’s contributions. On January 1, the ratio was 90% for Alan, 5% for Bob, and 5% for Cathy. On December 1, Bob and Cathy each contributed additional amounts and the new profit and loss sharing ratios were 30% for Alan, 35% for Bob, and 35% for Cathy. For its tax year ending December 31, the partnership had a loss of $1,200. This loss occurred equally over the partnership’s tax year. How is the loss allocated?

A. Alan $1,020, Bob $90, Cathy $90.

B. Alan $360, Bob $420, Cathy $420.

C. Alan $720, Bob $240, Cathy $240.

D. Alan $1,080, Bob $60, Cathy $60.

FAR 05/27/14; 786/110 - Done !

[Anonymous]

I pick A. Alan $1,020. Bob $90 and Cathy $90. I allocated based on the percentage of year they owned a certain percentage of shares.

For the one above that, I would choose A. $50,000. The contribution of services would cause a gain, but the others do not.

[Anonymous]

I pick A. Alan $1,020. Bob $90 and Cathy $90. I allocated based on the percentage of year they owned a certain percentage of shares.

For the one above that, I would choose A. $50,000. The contribution of services would cause a gain, but the others do not.

[Kenada]

Yes that is right Cupcake for both answers.

So i get for services it would be taxable ..but i want to know for the other two its no gains/losses even though their owner ship is less than 80% in the partnership.

What the main advantage with 80% ownership verses having less than 80% ownership.. I am trying to visualize how its treated differently.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Yes that is right Cupcake for both answers.

So i get for services it would be taxable ..but i want to know for the other two its no gains/losses even though their owner ship is less than 80% in the partnership.

What the main advantage with 80% ownership verses having less than 80% ownership.. I am trying to visualize how its treated differently.

FAR 05/27/14; 786/110 - Done !

[UCMCPA]

I thought the 80% ownership rule only applied when forming a Corporation and not a partnership?

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Author]

Replies