Ask Question
22 February, 01:23

Joseph contributed $25,750 in cash and equipment with a tax basis of $14,800 and a fair market value of $19,500 to Berry Hill Partnership in exchange for a partnership interest. a. What is Joseph's tax basis in his partnership interest? b. What is Berry Hill's basis in the equipment?

+2
Answers (1)
  1. 22 February, 04:59
    0
    a. Joseph's tax basis in his partnership interest=$40,550

    b. Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill's basis in the equipment is $14,800

    Explanation:

    a. In order to calculate Joseph's tax basis in his partnership interest we would have to make the following calculation:

    Joseph's tax basis in his partnership interest=amount contributed in cash+tax basis equipment

    According to given dа ta:

    amount contributed in cash=$25,750

    equipment tax basis = $14,800

    Therefore, Joseph's tax basis in his partnership interest=$25,750+$14,800

    Joseph's tax basis in his partnership interest=$40,550

    Joseph's tax basis in his partnership interest is $40,550

    b. According to the given data Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill's basis in the equipment is $14,800
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Joseph contributed $25,750 in cash and equipment with a tax basis of $14,800 and a fair market value of $19,500 to Berry Hill Partnership ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers