C is offered a capital interest in a partnership whose soleasset is a commercial building with a fai

C is offered a capital interest in a partnership whose soleasset is a commercial building with a fair market value of $150,000and an adjusted basis of $90,000. The building has been depreciatedon the straight line method. A and B have $45,000 outside bases intheir respective partnership interests. C has performed real estatemanagement services for the partnership over the past year and hasagreed to perform additional services in the future. (a) What are the tax consequences to C and to the partnership(i.e., A and B) if in year one C receives a 10% capital interest inthe partnership as compensation for his management services overthe past year? (b) What result in (a), above, if C receives his capitalinterest in exchange for legal services performed in connectionwith the acquisition of the building? (c) What result in (a), above, if C receives his interest ascompensation for services to be rendered, however that if C ceasesto render services before the end of the year three, C or anytransferee of C must relinquish his interest in the partnership.Assume for this problem that the building will have a value of$450,000 and an adjusted basis of $90,000 at the end of yearthree. (d) What result in (a), above, if C is promised that if herenders services until the end of year three, the partnershipinterest will be transferred to him at that time? Again, assumethat the building will have a value of $450,000 and an adjustedbasis of $90,000 at the end of year three. . . .

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.