Exam 11: Sole Proprietorships and Flow-Through Entities

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Logan's basis in his partnership interest is $20,000 when he receives a pro rata nonliquidating distribution from the partnership of $22,000 cash and inventory with a basis of $2,000 and fair market value of $3,000).What is Logan's basis for the inventory he received?

(Multiple Choice)

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Question 81

To qualify for the limited deduction for rental real estate losses

(Multiple Choice)

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Question 82

Which of the following is not a characteristic of a partnership?

(Multiple Choice)

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Question 83

Juan's interest in the Gonzalez Partnership is liquidated when his basis in the interest is $30,000.He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and a fair market value of $30,000.Juan will recognize:

(Multiple Choice)

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Question 84

S corporations never pay any income taxes.

(True/False)

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Question 85

Bill has a $15,000 passive loss, a $12,000 passive gain, $20,000 of active income, and a $14,000 active loss.What is Bill's current year net taxable income or loss?

(Multiple Choice)

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Question 86

The owners of a limited liability company are called members.

(True/False)

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Question 87

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Logan's basis in his partnership interest is $20,000 when he receives a pro rata nonliquidating distribution from the partnership of $22,000 cash and inventory with a basis of $2,000 and fair market value of $3,000).What is Logan's basis for the inventory he received?

To qualify for the limited deduction for rental real estate losses

Which of the following is not a characteristic of a partnership?

Juan's interest in the Gonzalez Partnership is liquidated when his basis in the interest is $30,000.He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and a fair market value of $30,000.Juan will recognize:

S corporations never pay any income taxes.

Bill has a $15,000 passive loss, a $12,000 passive gain, $20,000 of active income, and a $14,000 active loss.What is Bill's current year net taxable income or loss?

The owners of a limited liability company are called members.

Introduction to Taxation

The Tax Practice Environment

Determining Gross Income

Employee Compensation

Deductions for Individuals and Tax Determination

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Estates, Gifts, and Trusts

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