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14/10/2020 Client: bingyanj Deadline: 3 days

 


Complete the case titled "Small Business-Peachtree" attached above. You will need to down load the case and answer the questions given. Here are some hints that will help you on the case:


I



  • Discuss the entity choices available to Peachtree. Include some comments about Form 8832.


II



  • What might be the entity’s intent for not making a §754 election? In your discussion, use the terms duplicate loss and substantial built-in loss.

  • Consult the “anti-abuse rules” of the regulations to determine which partner(s) can deduct losses from the sale of The Commons.


III



  • Trace the basis that Toby should assign to the land and building

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