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Thomas owns a 35% interest in Jefferson Partnership. On January 1, 2025 Thomas had a basis in his partnership interest of $5,000. For 2025 Jefferson Partnership reported the following items. What is Thomas’s outside basis after adjustment for his share of these items?    Ordinary business income $ 100,000   §1231 gain     15,000   Charitable contributions     25,000   Tax-exempt income       3,000   Additional Jefferson Partnership bank loan     12,000   

The Polk Partnership balance sheet (cash method) includes the following assets on December 31, 2025. James, a 1/3 partner, has an adjusted basis of $90,000 for his partnership interest. If James sells his entire partnership interest to Sarah for $100,000 cash, what is the amount and character of James’s gain or loss from the sale?      Basis FMV   Cash $ 180,000 $ 180,000   Accounts receivable -0- 60,000   Land     90,000   120,000       Total $ 270,000 $ 360,000   

Abraham has a basis in his Lincoln Partnership interest of $30,000. He receives a current distribution of $20,000 cash and investment land (FMV $7,000, basis $6,000). His basis in the land is

Martin has a 30% interest in the Van Buren Partnership and receives a guaranteed payment of $30,000. In 2025, Van Buren reports ordinary income of $25,000 and capital gains of $60,000 before taking into account Martin’s guaranteed payment. What is the amount and character of all income or loss that Martin must report as a result of partnership activities?

Martin transfers an asset ($200,000 FMV; $140,000 A/B) to Van Buren Corporation in a transaction that qualifies under §351. Martin receives Van Buren stock (FMV of $180,000) and Johnson Inc. stock ($20,000 FMV; $10,000 A/B). Van Buren Corporation must recognize

McKinley Incorporated reported a net capital loss of $13,000 in 2025. McKinley had a net capital gain of $4,300 in 2022and $3,000 in 2021. In 2024, although the company suffered a net operating loss, it had net capital gains of $1,000. What is the amount of McKinley Incorporated’s capital loss carryover to 2026 after it applies the carryback?

Lincoln Corporation had operating income of $395,000, operating expenses of $280,000, a dividend received of $60,000, a capital loss of $10,000, a capital gain of $25,000 and a dividend received deduction of $30,000. What is Lincoln Corporation’s income tax liability for the year?

John Quincy transfers property ($200,000 FMV; $190,000 A/B) to a newly formed corporation in a transaction that qualifies under §351. John Quincy receives stock with a FMV of $180,000 and $20,000 cash. John Quincy’s basis in the stock is

James transfers property with a basis of $12,000 and a fair market value of $17,800 to Garfield Corporation in exchange for stock with a fair market value of $12,000 and $3,920 in cash. Garfield Corporation assumed a liability of $1,880 on the property transferred. Assume the transaction qualifies for §351. What is Garfield Corporation’s basis in the property received in the exchange?

If the defense attorney on cross-examination asks the officer to express an opinion, the officer should delay answering to allow the prosecution an opportunity to object.