Question 1

When must a partnership file its return?

Accepted Answer

A)  By the 15th day of the 4th month after the partnership's tax year end 
B)  By the sixth month after the original due date if an extension is filed 
C)  By the 15th day of the 3rd month after the partnership's tax year end 
D)  By the 15th day of the 4th month after the partnership's tax year end and by the sixth month after the original due date if an extension is filed 
E)  By the sixth month after the original due date if an extension is filed and by the 15th day of the 3rd month after the partnership's tax year end 
A)  By the 15th day of the 4th month after the partnership's tax year end 
B)  By the sixth month after the original due date if an extension is filed 
C)  By the 15th day of the 3rd month after the partnership's tax year end 
D)  By the 15th day of the 4th month after the partnership's tax year end and by the sixth month after the original due date if an extension is filed 
E)  By the sixth month after the original due date if an extension is filed and by the 15th day of the 3rd month after the partnership's tax year end

Question 2

Which of the following does not adjust a partner's basis?

Accepted Answer

A)  Ordinary business income (loss) 
B)  Change in amount of partnership debt 
C)  Tax-exempt income 
D)  All of these adjust a partner's basis 
A)  Ordinary business income (loss) 
B)  Change in amount of partnership debt 
C)  Tax-exempt income 
D)  All of these adjust a partner's basis

Question 3

KBL, Inc., AGW, Inc., Blaster, Inc., Shiny Shoes, Inc., and a group of 24 individuals form Shoes Galore General Partnership on October 11, 20X9. Now, Shoes Galore must adopt its required tax year-end. The partners' year-ends, profits interests, and capital interests are reflected in the table below. Given this information, what tax year-end must Shoes Galore use and what rule requires this year-end? $\begin{array} { | c | } 
\hline 
\quad\quad\quad\quad\quad\quad\quad\quad\quad{ \text { Shoes Galore Partnership } }\quad\quad\quad\quad\quad\quad\quad\quad \
\end{array}$
$\begin{array} { | c | c | c | c | } 
\hline & \text { Year-End } & \text { Profits } & \text { Capital } \
\hline \text { KBL, Inc. } & 1 / 31 & 25 \% & 25 \% \
\hline \text { AGIV, Inc. } & 1 / 31 & 20 \% & 20 \% \
\hline \text { Blaster, Inc. } & 3 / 31 & 4 \% & 4 \% \
\hline \text { Shiny Shoes, Inc. } & 6 / 30 & 3 \% & 3 \% \
\hline 24 \text { Individuals }& 12 / 31 & \begin{array} { c } 
2 \% \text { each } \
( 48 \% \text { total } )
\end{array} & \begin{array} { c } 
2 \% \text { each } \
( 48 \% \text { total } )
\end{array} \
\hline
\end{array}$

Accepted Answer

Shoes Galore must adopt a 1/31 year end

Question 4

Under proposed rules issued by the IRS, in which of the following situations should an LLC member be treated as a general partner for self-employment tax purposes?

Accepted Answer

A)  The member is not personally liable for any of the LLC debt. 
B)  The member has authority to contract on behalf of the LLC. 
C)  The member spends 450 hours participating in the management of the LLC's trade or business during the taxable year. 
D)  The member is listed on the LLC's letterhead. 
A)  The member is not personally liable for any of the LLC debt. 
B)  The member has authority to contract on behalf of the LLC. 
C)  The member spends 450 hours participating in the management of the LLC's trade or business during the taxable year. 
D)  The member is listed on the LLC's letterhead.

Question 5

If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can be offset by the suspended passive losses in the year of sale?

Accepted Answer

A)  Passive activity income 
B)  Portfolio income 
C)  Active business income 
D)  Any of these types of income can be offset. 
E)  None of these. The suspended losses disappear when the passive activity is sold. 
A)  Passive activity income 
B)  Portfolio income 
C)  Active business income 
D)  Any of these types of income can be offset. 
E)  None of these. The suspended losses disappear when the passive activity is sold.

When must a partnership file its return?

Which of the following does not adjust a partner's basis?

Under proposed rules issued by the IRS, in which of the following situations should an LLC member be treated as a general partner for self-employment tax purposes?

If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can be offset by the suspended passive losses in the year of sale?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning of the Cfa Institute

Filters

Exam 20: Forming and Operating Partnerships

When must a partnership file its return?

Which of the following does not adjust a partner's basis?

Under proposed rules issued by the IRS, in which of the following situations should an LLC member be treated as a general partner for self-employment tax purposes?

If a taxpayer sells a passive activity with suspended passive activity losses from prior years, what type of income can be offset by the suspended passive losses in the year of sale?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The US Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning of the Cfa Institute

Filters