Portfolio Milestone - Accounting (1 page)

Anonymous
timer Asked: Dec 22nd, 2018
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Question description

Just complete the Portfolio Milestone in regards to the below portfolio project, chose a company that you want.

Review the Portfolio Project options due in Week 8. Choose the portfolio project that you will complete for this course. In a one-page memo to the client (either Streetcar Partners or David Morris, depending on the option chosen) summarize the significant tax issues faced during the current year. Then discuss at least three sources that you will use to address their tax issues. Provide a citation for the source, a brief summary of the source, and how you think it will be helpful for addressing their tax issues.


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Option #1: Partnership Taxation

In this portfolio project you will consider general partnership basis issues, compute partners’ adjusted basis, determine current year tax position, prepare tax forms, and write a memo to the partners analyzing their current year tax issues and changes to basis.

Streetcar General Partnership was created in the current year with the following partner contributions: Mike contributed $110,000 cash, Alex contributed $110,000 cash, and Pat contributed land with a tax basis of $140,000 and a fair market value of $360,000. The partnership assumed a $140,000 mortgage on the land; no partner is personally liable for the mortgage. At the end of the current year Streetcar made a $14,000 payment on the mortgage. Mike, Alex, and Pat will split all profits and losses equally.

Current year operations had the following results:

Sales revenue$520,000
Cost of goods sold410,000
Operating expenses70,000
Long-term capital gains2,400
Section 1231 Gains900
Charitable contributions700
Municipal bond interest300
Salary paid as a guaranteed payment to Alex (not included in expense)3,000

Part A: Determine Basis

  1. Using RIA Checkpoint, find a court case discussing partners’ basis in their partnership interest. Summarize the court case and tax law relating to basis calculations.
  2. Using the information summarized, determine Mike’s, Alex’s, and Pat’s initial basis in their partnership interest and the basis for each partner at the end of the current year. These calculations should be one page.

Part A Submission Requirements:

  • Your summary of the court case, summary of tax law relating to basis calculations, and the specified partners’ basis calculations should be three to five pages, not including the required cover and reference pages. Note, the basis calculations should not be more than one page.
  • Support your paper with at least four to six scholarly, legislative, or court references (of which the textbook may be one). The CSU-Global Library and RIA Checkpoint are good places to find these references.
  • Format your paper according to APA
  • Review the grading rubric to see how you will be graded for this assignment.

Part B: Tax Form Preparation

  1. Prepare Schedule K for the current year from page 4 of Form 1065.
  2. Prepare Alex’s Schedule K-1.

Part B Submission Requirements:

  • The tax forms required for Part B should be submitted as PDF documents.

Part C: Client Letter
Prepare a letter to Alex summarizing her current year tax issues.

Part C Submission Requirements:

  • Your letter should be two to three pages, not including the required cover and reference pages.
  • Support your paper with at least four to six scholarly, legislative, or court references (of which the textbook may be one). The CSU-Global Library and RIA Checkpoint are good places to find these references.
  • Format your paper according to the CSU-Global Guide to Writing & APA (Links to an external site.)Links to an external site..
  • Review the grading rubric to see how you will be graded for this assignment.

Tutor Answer

Chucks574
School: Carnegie Mellon University

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Anonymous
Good stuff. Would use again.

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