ACC 455 Week 3 Participations 

Prentice Hall’s Federal Taxation, Ch. 9

Read Ch. 9 of your textbook Prentice Hall's Federal Taxation (29th ed)

Partnerships

Students, let's discuss the tax law requirements to form a partnership and the different types of partnerships. Include in your discussion the difference in income items and items that are separately stated. Discuss the calculation of the owners' distributive share and basis. 

Prentice Hall’s Federal Taxation, Ch. 9

Read Ch. 9 of your textbook Prentice Hall's Federal Taxation (29th ed)

Article

Let's add what makes a good partner? One disadvantage of forming a partnership is having to deal with the human issues that come with partnerships. See the attached article and give comments. The interesting thing is that this article was written in the 1981. Do the concepts hold true today? If so, what advantage does the business entity provide that outweighs the risks? 

http://www.inc.com/magazine/19810701/9172.html 

Prentice Hall’s Federal Taxation, Ch. 9

Read Ch. 9 of your textbook Prentice Hall's Federal Taxation (29th ed)

Case Study

Here is the case study for week 3. Please apply the concepts found in the week's reading by responding to the questions. 

Court Case Briefs

U.S. v. D. N. Stafford, 727 F.2d 1043 (11th Cir., 1984) rev'g. 552 F.Supp 311 (DC GA, 1982).

The taxpayer received a partnership interest in exchange for a letter of intent for the purchase of property. This letter of intent was held to qualify as a contribution of property in exchange for an interest in the partnership. Therefore, the nonrecognition treatment of Sec. 721 was applicable to the receipt of the partnership interest. It was held that the property and exchange requirements of Sec. 721 were satisfied. This decision was based on a finding that the letter of intent encompassed a sufficient bundle of rights and obligations to be deemed property. The exchange requirements were met because the letter was owned by the taxpayer as an individual and because individual members of the transferee partnership did not have to agree to the transfer for an exchange to occur.

What is Section 721 and how does it provide benefit to a partnership?

What are your thoughts on the ruling?

What is the value of the letter?

Finally, would the ruling be different if made in the courts today?

Reference:

Anderson, E., Pope, R., Kramer, L. (2010) Prentice Hall's Federal Tax 2010: Corporations, 23/E. Prentice Hall, New Jersey

Prentice Hall’s Federal Taxation, Ch. 11

S Corporations

Students, what are the tax law requirements to form a S Corporation. Include in your discussion the difference in income items, specifically; highlight which items are separately stated. Finally, discuss the calculation of the owners' distributive share and basis. Why is this important? 

Corporate Structure and Taxation

Video Discussion

Students, watch the video and discuss.

Homework Team Assignment

Week 3 Adjustments

Students, lets discuss the team assignment. I want to focus on the tax adjustments. Does someone want to pick one of them and discuss. Be sure to identify which one you are discussing. Where did you get the information for the adjustment?  What is the amount of the adjustment? Was this a given amount or did you calculate it? If the amount is not given, how did you calculate it or find the amount that should be booked?  What is the theory around the adjustment? Please focus the discussion to these questions.