Partnership Income. (Obj. 2) Which of the following are separately stated partne
ID: 2467666 • Letter: P
Question
Partnership Income. (Obj. 2) Which of the following are separately stated partnership items? Business bad debts Foreign taxes paid Tax-exempt interest Guaranteed payments Net Section 1231 loss Depreciation recapture Interest income from business activities Partnership Charitable Contributions. (Obj. 2) Leona and Calley operate a placement service as partners, sharing profits and losses equally. During the current calendar year, the partnership contributes $3.000 to Calley's alma mater. State University. The partnership treats this contribution as an expense in computing its $47,500 profit from operations. Is the partnership entitled to treat the contribution to State University as a deduction from ordinary income in the partnership return? What is each partner's distributive share of ordinary income from the partnership? Can each partner claim a deduction on her personal income tax return for the contribution the partnership made to State University? If so, how much? Guaranteed Payments. (Obj. 2) What are guaranteed payments to partners and how are they treated by the partnership and the partner?Explanation / Answer
Ans 6 b) Foreign taxes Paid c) tax exempt interest e) Net section 1231 losses
Seprately stated items are the items- income item/deduction, the tax consequences of which depends on the tax situation of partners.
Ans 8 Guaranteed payments are the payments which are made to partners irrespective of the income or not of the partnership. Which means if the partnership has profit or not than also it will pay to partners.This payment is made to compensate the contribution given by partners in terms of services or goods.
For partners -Gurananteed payments are treated as partner's distributive share of ordinary income.These are not subject to withholding of income tax. partner show it in schedule E as ordinary income with other ordinary income.
For Partnership, itcan deduct guarnteed payment as business expense.
Dear student please dont post multiple question under one question I have answered Q 6 and 8