Review the following independent situations:

ACC 455 Entire Course Link

https://uopcourses.com/category/acc-455/
Review the following independent situations:

a.
Kelly receives her 20% partnership interest for a contribution of property having a $14,000 basis and a $17,000

FMV. The partnership assumes her $10,000 recourse liability but has no other debts.
b.
Kelly receives her 20% partnership interest as a gift from a friend. The friend's basis (without considering partnership liabilities) is

$34,000.

The FMV of the interest at the time of the gift is $36,000.

The partnership has liabilities of $100,000

when Kelly receives her interest. No gift tax was paid with respect to the transfer.
c.
Kelly inherits her 20% interest from her mother. Her mother's basis was $140,000.

The FMV of the interest is $120,000 on the date of death and $160,000

on the alternate valuation date. The executor chooses the date of death for valuing the estate. The partnership has no liabilities.
Requirement

What is

Kelly's basis for her partnership interest in each of the independent situations? The partners share the economic risk of loss from recourse liabilities according to their partnership interests. (Use parentheses or a minus sign for subtractions. Leave any unused cells blank.)

Situation a.

Kelly receives her 20% partnership interest for a contribution of property having a $14,000 basis and a $17,000 FMV. The partnership assumes her $10,000 recourse liability but has no other debts.

Basis before adjustments
 
Minus:
 
 
Plus:
 
 
Partnership interest basis
 
Situation

b.

Kelly receives her 20% partnership interest as a gift from a friend. The friend's basis (without considering partnership liabilities) is $34,000.

The FMV of the interest at the time of the gift is $36,000.

The partnership has liabilities of $100,000 when Kelly receives her interest. No gift tax was paid with respect to the transfer.

Basis before adjustments
 
Minus:
 
 
Plus:
 
 
Partnership interest basis
 
Situation c.

Kelly inherits her 20% interest from her mother. Her mother's basis was $140,000.

The FMV of the interest is $120,000 on the date of death and $160,000

on the alternate valuation date. The executor chooses the date of death for valuing the estate. The partnership has no liabilities.

Basis before adjustments
 
Minus:
 
 
Plus:
 
 
Partnership interest basis
 
 

 

 
Powered by