Draft a letter to the partnership, evaluating the allocation of MACRS in each of the three years under Reg. §§ 1.704–1 and –2. The partnership’s address is 53 East Marsh Ave., Smyrna, GA 30082.

Topic: ACCT 4306-110 – FEDERAL TAX ACCOUNTING

 

Your clients, Grayson Investments, Inc. (Ana Marks, President), and Blake Caldwell, each contributed $200,000 of cash to form the Realty Management Partnership, a limited partnership. Grayson is the general partner, and Blake is the limited partner. The partnership used the $400,000 cash to make a down payment on a building. The rest of the building’s $4,000,000 purchase price was financed with an interest-only nonrecourse loan of $3,600,000, which was obtained from an independent third-party bank.

The partnership allocates all partnership items equally between the partners except for the MACRS deductions and building maintenance, which are allocated 70% to Blake and 30% to Grayson. The partnership wants to satisfy the “economic effect” requirements of Reg. §§ 1.704–1 and 1.704–2 and will reallocate MACRS, if necessary, to satisfy the requirements of the Regulations.

Under the partnership agreement, liquidation distributions will be paid in proportion to the partners’ positive capital account balances. Capital accounts are maintained as required in the Regulations. Grayson Investments has an unlimited obligation to restore its capital account, while Blake is subject to a qualified income offset provision.

Assume that all partnership items, except for MACRS, will net to zero throughout the first three years of the partnership operations. Also assume that each year’s MACRS deduction will be $200,000 (to simplify the calculations).

Draft a letter to the partnership, evaluating the allocation of MACRS in each of the three years under Reg. §§ 1.704–1 and –2. The partnership’s address is 53 East Marsh Ave., Smyrna, GA 30082. Do not address the “substantial” test.

1. Perform and identify each step separately 2-3a through 2-3f.

2. In step 2-3b, Refining the Problem, list all of the issues you intend to research.

3. In step 2-3c prepare a list of “Key Words” derived from the issues to guide your research.

4. In step 2-3d list each for the tax resources you found utilizing “Key Words” from step 3 preparing a brief outline of what the resource conveyed and strike out the resources that do not apply to your problem upon further review.

5. In step 2-3e Support your solution or alternative solutions from your research.

6. Prepare your Tax File Memorandum, Exhibit 2.9,, from information contained in steps 2-3a through 2-3e.

6. In step 2-3f Prepare a Client Letter, Exhibit 2.10 to communicate your research to the client.

The post Draft a letter to the partnership, evaluating the allocation of MACRS in each of the three years under Reg. §§ 1.704–1 and –2. The partnership’s address is 53 East Marsh Ave., Smyrna, GA 30082. appeared first on Accredited Research Writers.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic Guarantees
  • Free title page and bibliography
  • Free unlimited revisions
  • Plagiarism-free papers
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Progressive delivery
  • Plagiarism report
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double or single line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Writing quality papers is a TOP priority. One expert takes one order at a time.
The service package includes topic brainstorm, research, drafting, proofreading, plagiarism check, citation formatting, and revisions.

Money-back guarantee

We appreciate how valuable your time is. Hence, we make sure all custom papers are 100% original and delivered within the agreed time frame

Read more

Zero-plagiarism guarantee

Each paper is written from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

We see it as our duty to follow all instruction the client provides. If you feel the completed paper does not meet your exact requirements, we will revise the paper if you let us know about the problem within 14 business days from the date of delivery.

Read more

Privacy policy

Your email is safe, we use your personal data for legal purposes only and in accordance with personal data protection law. Your payment details are also secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

You can easily contact us with any question or issues you need to be addressed. Also, you have the opportunity to communicate directly with assigned writer, e-mail us, submit revision requests, chat with us online, or call our toll-free on our site. We are always available to our customers.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
-->