Multiple Choice
Which of the following statements regarding capital and profit interests received for services contributed to a partnership is false?
A) The holding period of a capital or profits interest begins on the date the interest is received.
B) Partners receiving capital interests must recognize the liquidation value of their capital interests as capital gain.
C) Partners receiving only profits interests generally don't recognize income when the profits interest is received.
D) Partners receiving only profits interests include their share of partnership debt in the tax basis of their partnership interest.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: A partner's tax basis or at-risk amount
Q26: On 12/31/X4, Zoom, LLC reported a $60,000
Q32: On January 1,20X9,Mr.Blue and Mr.Grey each
Q49: Income earned by flow-through entities is usually
Q62: For partnership tax years ending after December
Q87: What general accounting methods may be used
Q90: On March 15, 20X9, Troy, Peter, and
Q92: Which of the following items are subject
Q96: What is the difference between a partner's
Q112: Tax elections are rarely made at the