Corporate and partnership tax preparation
Complete the problem in the partnership scenario that requires research and analysis as well as computation.
Introduction
There is a need for other forms of business ownership beyond sole proprietorship. Small businesses can only do so much to provide the public with an array of goods and services that match the public’s insatiable appetite. To this end, large corporate entities are better equipped to provide the required goods and services. Partnerships, in all of their forms, also fill a niche, especially in the area of services, such as legal, health, and welfare.
When it comes to these business entities’ responsibility for reporting their income and deductions, the tax code becomes very complicated. Their tax reporting needs may require the services of certified public accountants, who know the code thoroughly.
Corporate and partnership tax preparation require highly developed skills in research and analysis.
Corporate and partnership tax preparation require highly developed skills in research and analysis. Consider the following problems and research the applicable tax regulations to answer the questions.
Instructions
Download Assessment 7 Problems [DOCX].
Using the primary source of IRS.gov and the IRS Interactive Tax Assistant and Tax Trails, locate and interpret regulations and publications that relate to each problem.
Record your answers to the problems in a Word document.
Provide an explanation for each answer, including any related calculations and evidence.
Include the following criteria from the scoring guide in your responses.
Determine partners’ recognized gains, explaining how much they gained and the rationale.
Prepare self-employment income and basis at the end of the year.
Determine how much gain or loss must be recognized on a distribution, ending partnership basis, and basis in equipment.
Sample Solution
Schedules detailing each partner’s ownership interest in the business are included in the annual partnership tax returns. On their individual tax returns, each partner must disclose their ownership stake in the partnership. Because the profits, losses, credits, and deductions of a partnership pass through to the partners, this income is subject to personal taxation. You must abide by the laws governing US partnerships and submit any US-based company returns even if you are not a US resident. Tax authorities in the US and abroad are putting more effort into pursuing business tax payers that violate domestic filing and disclosure laws. We can prepare both your individual and partnership tax returns when we produce your partnership tax return.
