Your presentation will be structured as a response to a “client question”. You will develop a presentation to answer this question. Topic is Partnership Contributions)
client senario: Client A, B and C would like to form a limited partnership with each partner owning 1/3 of the partnership. The partnership has taken a loan of $20,000 from the bank. (do PowerPoint slides on client B and C and include notes on what to say on my presentation)
- Client A
$100,000 cash contribution
- Client B
Contributing some land they have owned for 5 years with a basis of $ 20,000 and accounting services
- Client C (limited partner)
Investing $100,000 into the partnership.
client questions
- Difference between outside and inside basis – NC
What is each partner’s tax basis? – NC
- Tax implications on gains and losses on property contributions.
Client B asks if they should sell their land first and contribute the cash or contribute the land instead.
- What flow-through income should be recognized?
Are there any self-employment taxes on the income and any loss limitations associated with it?