Partnerships and S Corporations

Case Assignment

The fourth case has two separate parts.

Required

Part One:

Both partnerships and S corporations are pass-through entities. Discuss major similarities and differences between these two types of entities. Don't forget that there are multiple types of partnerships. Do tax rules vary among the different types of partnerships?

Part Two:

Plummet Company (used for the SLPs) is doing very well, but the land the company owns is quite valuable. A developer approaches the company and offers to purchase the land for $3 million. Discuss some tax issues relating to the potential disposition of the land for the company and the owners of the business. Does the type of entity through which the business operates have a significant impact on the tax consequences resulting from a disposition of the land? Provide some computational support.

Assignment Expectations

It is important to answer the questions as posed. The discussion should be 5-7 pages. Support your discussion with computations as requested and don't forget references in APA format.