Joy Is a Material Participant in a Partnership

question 59

Multiple Choice

Joy is a material participant in a partnership.Her basis in her partnership interest is $150,000.Due to a major expansion,the partnership will generate a significant loss this year,and Joy's share is expected to be $200,000.The partners expect the partnership to report a large profit next year.Joy is in the top tax bracket this year,and she expects to be in a lower tax bracket next year.Due to her higher marginal tax rate this year,Joy would like to deduct her full share of the partnership loss this year.What strategies can she employ before year-end to assure full deduction of this year's loss?

• A)As a material participant,Joy will be entitled to deduct her full share of the partnership loss this year.
• B)Joy can make a loan to the partnership before year-end.
• C)Joy can contribute capital to the partnership before year-end.
• D)Either Response B or Response C will allow Joy to deduct her full share of the loss.

Identify the proper sequence for delivering negative messages to superiors, subordinates, and peers.

Recognize the importance of planning and strategizing before composing a negative message.

Understand how to prevent psychological reactance in negative communication.

Learn the strategic writing patterns that help maintain goodwill in negative messaging.

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Definitions:

Employment Legislation

Laws and regulations that govern the relationship between employers and employees, covering aspects such as wages, working hours, health and safety, and discrimination.

Telecommute

The practice of working from a remote location, outside of the traditional office, via internet connectivity.

Human Resource Demands

The requirements or needs for human capital within an organization to meet its operational and strategic objectives.

Corporate Strategy

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.