Question

please answer below t or f questions

A partner receives a distribution of cash, inventory and a vehicle. His outside basis is first allocated to the inventory, then to the cash and then to the vehicle.

Any partnership debt that is allocated to another partner is treated as deemed cash contribution.

Bobby owns 60 percent of the stock of ABC Corporation. Unrelated individuals own the remaining 40 percent. For a stock redemption to be treated as an exchange under the "substantially disproportionate" rule, the redemption must reduce bobby’s stock ownership below 48 percent

Flow-through S-corporation losses that are not deductible due to loss-limitation rules are suspended and carried forward for 5 years

Answer 1

A partner receives a distribution of cash, inventory and a vehicle. His outside basis is first allocated to the inventory, then to the cash and then to the vehicle.: True

Any partnership debt that is allocated to another partner is treated as deemed cash contribution.: True as per Sec 752 regulations

Bobby owns 60 percent of the stock of ABC Corporation. Unrelated individuals own the remaining 40 percent. For a stock redemption to be treated as an exchange under the "substantially disproportionate" rule, the redemption must reduce bobby’s stock ownership below 48 percent: True as per section 302(2) regulations

Flow-through S-corporation losses that are not deductible due to loss-limitation rules are suspended and carried forward for 5 years: False as per S Corporation Stock and Debt Basis it can be carrief forward indefinately