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 Chapter C:9

Partnership Formation and Operation

Discussion Questions

C:9-1 Advantages of a partnership for Yvonne and Larry include:

1. The partnership itself is not subject to tax, thereby eliminating the problem of double
taxation that exists for C corporations. p. C:9-4.
2. Partners may divide the partnership's profit or loss among themselves without regard
to their proportionate capital interests (as long as the allocation has substantial economic effect).
pp. C:9-17 through C:9-20.
3. Partnerships are popular because of the relative simplicity and informality inherent in
creating and operating such entities. No legal agreement is required to form a partnership but a
written agreement is advisable. p. C:9-2.
4. Under the conduit principle of taxation, partnership losses and other items receiving
special tax treatment flow through to the partners. p. C:9-4.

C:9-2 Lack of limited liability. A corporation provides limited liability protection for the business
owners while a general partnership does not. The purchase of the inn is likely to be financed with
debt and additional debt is likely to be incurred during the renovations. The construction required
during the renovation and the day-to-day operation of the inn provides significant exposure for
liability from lawsuits. The partnership form would not protect the owners of the business from
possibly losing their individual assets. If the owners want the advantages of a partnership and still
have limited liability, they may want to consider a limited liability company (LLC) or a limited
liability limited partnership (LLLP) if available in the taxpayer’s state. pp. C:2-3 through C:2-6 and
C:9-2 through C:9-4.

C:9-3 General partnership. Because Sam will be providing business advice, this partnership should
be arranged as a general partnership. Both brothers will be actively managing the business and
therefore limited liability protection would not be available to Sam if the partnership is created as a
limited partnership with Sam as the limited partner. The brothers, however, also may want to
consider an LLC instead of a partnership. pp. C:9-2 through C:9-4.

C:9-4 Whether Doug receives a profits interest or a capital and profits interest; he theoretically
should report the value of the property he receives for services as ordinary income. In this case, the
initial basis for his partnership interest equals the amount he reports as income. If the profits
interests cannot be valued, however, Doug recognizes no income and has a zero basis in his
partnership interest. Also, under Rev. Proc. 93-27, 1993-2 C.B. 343, the IRS will not treat receipt of
a profits interest as a taxable event unless one of the following events occurs: (1) the profits interest
relates to a substantially certain and predicable income stream, (2) the partner disposes of the interest
within two years of receipt, or (3) the interest is a publicly traded partnership. (Note: The IRS is in
the process of revising its rules concerning service partners. See Notice 2005-43, 2005-24 C.B.
1221.) pp. C:9-10 through C:9-12.

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C:9-1
C:9-5 a. Probably not. The existing partner could contribute the property tax-free to the
partnership, but Sec. 704(c) requires that the tax attributes from contributed property be allocated to
the partner that contributes the property. Under Sec. 704(c), the partners must specially allocate
among themselves the income, gain, loss, and deductions attributable to contributed property in a
manner that reflects the difference between the property's FMV and its tax basis at the time of the
contribution. In addition, the partnership will have the property with a carryover basis, which is
below its FMV. For depreciable assets, the partnership will get smaller depreciation deductions and
the special allocation of depreciation among the partners may not totally compensate the other
partners. pp. C:9-5 through C:9-12 and C:9-18 through C:9-20.
b. Sell or lease the property to the partnership or sell the property to a third party who
then contributes the property to the partnership. pp. C:9-27 and C:9-28.
c. Ordinary income recognition is required on a partner's sale of property to the
partnership where the seller owns more than 50% of the capital or profits interests if the property is
either depreciable, or is not a capital asset, in the hands of a partnership. If the partner leases
property to a partnership, the partner retains the depreciation and other deductions with respect to the
property. The leasing partner also avoids the depreciation recapture provisions. Rentals received
from the partnership are taxed as ordinary income. A sale of the property to a third party is taxed as
any other sale would be with no special tax consequences. pp. C:9-27 and C:9-28.

C:9-6 a. The partner recognizes gain on the contribution of property and assumption of a
liability if the amount of the liability assumed by the other partners exceeds the contributing
partner's basis in the contributed property plus her share of existing partnership liabilities. pp. C:9-5
through C:9-8.
b. Net decrease. The basis in the partnership interest will be decreased by the amount of
the liability assumed by the other partners. Viewed another way, her basis will increase by her share
of the increase in partnership liabilities and decrease by her liability assumed by the partnership, for
a net decrease. pp. C:9-6 through C:9-8.

C:9-7 a, b, and d. p. C:9-12.

C:9-8 No. Partnership ordinary income is the total of partnership income and deduction items that
do not have to be separately stated. This partnership has $100,000 of ordinary income. Partnership
taxable income, however, is the sum of all taxable items that are either separately stated or included
in ordinary income. BW’s partnership taxable income is $150,000 ($100,000 ordinary income +
$50,000 long-term capital gain). p. C:9-17.

C:9-9 The partner's distributive share will equal the sum of the partner’s earnings for one-half of
his or her beginning-of-the-year interest for the entire year and the partner’s earnings for the other
one-half of his or her beginning-of-the-year interest for nine months (calculated on a daily basis).
pp. C:9-18 and C:9-19.

C:9-10 Usually no because a limited partner normally has no economic risk for recourse debt.
However, a limited partner's basis is increased by recourse liabilities to the extent the limited partner
is liable to incur an economic loss, for example, to the extent he or she is obligated to repay a

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C:9-2
general partner should the general partner have to pay the debt or to the extent the limited partner
has guaranteed the debt. pp. C:9-21 through C:9-24.

C:9-11 Qualified nonrecourse real estate financing is included in the at-risk basis of both general and
limited partners. This financing meets the requirements for qualified nonrecourse real estate
financing. p. C:9-26.

C:9-12 Less restrictive. Section 704(d) limits the loss to the adjusted basis (before reduction by
current year's losses) of a partner's interest in the partnership at the end of the partnership tax year in
which the loss occurs. This basis includes recourse debt (to the extent of a partner’s economic risk
of loss) and includes nonrecourse debt. The at-risk basis does not include nonrecourse debt (other
than qualified nonrecourse real estate financing). Thus, the at-risk rules are more restrictive than the
Sec. 704(d) rule. p. C:9-26.

C:9-13 No. As a limited partner in the JRS Partnership, Jeff is almost certainly subject to the passive
loss limitation rules on losses from this partnership. Accordingly, income from a general partnership
in which Jeff materially participates (and thus earns active income) cannot be used to offset the
passive losses. Jeff can use losses from the JRS Partnership only to offset passive income, or he can
claim the losses when he sells his entire interest in the JRS Partnership or when the partnership
terminates. pp. C:9-26 and C:9-27.

C:9-14 Contribute the property. ABC Partnership will hold the land as inventory for resale to
customers and not as a capital asset. Because Helen owns more than a 50% interest in the ABC
Partnership, the sale of the land to the partnership will generate ordinary income instead of capital
gain for Helen. If Helen instead contributes the land to the partnership, it will recognize no gain
until it sells the lots. Then, as the partnership sells each lot, Helen will recognize the precontribution
gain as well as her share of any postcontribution appreciation, and all the gain will be ordinary
income taxable at a marginal rate of up to 35%. In total, the ordinary income under this alternative
will be the same as if Helen had sold the land to the partnership. A contribution, however, will
allow her to delay the gain recognition. Even better results occur if Helen can dispose of 5% or
more of her partnership interest so that she owns, directly and indirectly, 50% or less of the ABC
Partnership. If she owns 50% or less, she can recognize capital gain on the sale of the land to the
partnership and use these gains to offset any capital losses she already may have recognized or that
she may desire to recognize. The capital gains are taxed to most taxpayers at a maximum marginal
tax rate of 15% or up to 20 percentage points below the rate applicable to ordinary income.
Alternatively, she could sell the land to a third party who would then contribute the land to the ABC
Partnership, assuming the partnership desires a new partner. Her gain on the sale of the land would
be capital gain, and the contributing partner would recognize no gain when he or she transferred the
land to the partnership. pp. C:9-27 and C:9-28.

C:9-15 A guaranteed amount is stated as a fixed dollar amount regardless of the partnership's income
or loss. A guaranteed minimum can be determined only after the profitability of the partnership's
operations has been determined. A guaranteed minimum may be paid partly out of the partner's
distributive share and partly as a guaranteed payment, which total to the amount of the guaranteed
minimum. pp. C:9-28 and C:9-29.

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C:9-3
C:9-16 Yes. Regulation Sec. 1.707-1(c) provides that a partner reports guaranteed payments as
ordinary income in the partner's tax year that includes the last day of the partnership's tax year in
which the partnership deducted the payments under its method of accounting. A partner reports his
or her distributive share of partnership items (determined under Sec. 702(a)) in the tax year that
includes the last day of the partnership's tax year. Thus, from a timing perspective, the two
payments schemes are the same to Tracy. pp. C:9-28 and C:9-29.

C:9-17 The Sec. 704(e) rules apply only to a capital interest in a partnership, where capital is a
material income producing factor and where the family member is the true owner of the interest. If
capital is a material income-producing factor for the partnership, the family partnership rules apply.
p. C:9-30.

C:9-18 The distributive shares allocated to Andrew and Steve will be combined and then a
reasonable salary for Andrew's personal services will be allocated to him. The remaining portion of
the distributive share (after a reasonable salary to Andrew) will be allocated 30/50ths to Andrew and
20/50ths to Steve. p. C:9-30.

Issue Identification Questions

C:9-19 • Does Bob recognize any gain on the formation? When will he recognize the
precontribution gain?
• What is Bob's basis and holding period for his partnership interest?
• Does Kate recognize any loss on the contribution of property in exchange for her
partnership interest? When will she recognize the precontribution loss? What will
the character of the loss be?
• What is Kate's basis and holding period for the partnership interest she received in
exchange for property?
• What basis and holding period does the partnership have in the property received?
• What are the Sec. 1250 ramifications for the building?
• What type of gain will the partnership and partners recognize on the sale of the
building?
• Did Kate receive any of her partnership interest for services?
• If so, what gain, loss, or deductions must the partnership recognize?
• What income must Kate recognize?

Bob must determine his basis in the partnership interest ($65,000 = $95,000 - $60,000 +
$30,000 share of liabilities) and his holding period for his interest in the partnership (begins with his
ownership of the office building). Because Bob recognizes no gain or loss, he does not have to be
concerned with any recapture potential under Sec. 1250. Also, Sec. 1250 recapture will not be a
concern if the parties have depreciated the property under straight-line MACRS rules. Bob,
however, will have to recognize precontribution gain on the office building at a future date. This
gain will be part Sec. 1250 gain subject to the 25% capital gains tax rate under Sec. 1(h)(l)(D) and
part Sec. 1231 gain subject to the 15% capital gains tax rate. As mentioned, if the building is
straight-line MACRS property, no ordinary depreciation recapture will occur.

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C:9-4
 Kate must determine her basis in the partnership interest ($105,000 = $75,000 + $30,000
share of liabilities) and her holding period for her interest in the partnership (begins with her
ownership of the land). (Also see discussion of services in the last paragraph of this solution.) Kate
recognizes no loss at the time of the partnership formation. If the land was a capital asset to Kate
and the partnership sells the land within five years of Kate's contribution, the loss will be a capital
loss up to $25,000, and that capital loss will be allocated to Kate as a precontribution loss. After five
years, the character of the loss will be determined by the character of the land to the partnership, but
Kate still will have to report any precontribution loss recognized. Guaranteed payments will be
reported as ordinary income.

The partnership must be concerned with the basis and holding period of the assets it receives
(carryover for both basis and holding period). The partnership can deduct from ordinary income the
guaranteed payments made to Kate.

An additional tax issue must be addressed. Bob contributed property with a net value of
$70,000 for a one-half interest in the partnership while Kate contributed property with a net value of
only $50,000 for a one-half interest in the same partnership. The total partnership has a net value of
$120,000 ($130,000 + $50,000 - $60,000 liability). One possibility is that Bob has made a $10,000
gift to Kate. If so, both partners’ bases must be adjusted to reflect the gift. Alternatively, the facts
suggest that Kate may be receiving some of her partnership interest in exchange for her services in
managing the business for the first year while receiving no guaranteed payment. If so, Kate must
recognize ordinary income and increase her basis for the value of the partnership interest she
received in exchange for services. If Kate is receiving some of her partnership interest for services,
the partnership must recognize gain or loss on the partnership assets she is deemed to receive and
must adjust the basis of the assets for her deemed recontribution. The partnership also must deduct
the guaranteed payment. (Note: The IRS is in the process of revising its rules concerning partners
who contribute services. See Notice 2005-43, 2005-24 C.B. 1221.) pp. C:9-5 through C:9-12, C:9-
28, and C:9-29.

C:9-20 • What items qualify as organizational expenditures, which are start-up expenditures,
and what items can be deducted currently?
• Does the partnership want to deduct (up to $5,000) and then amortize organizational
expenditures and/or start-up expenditures? If so, over what time period does the
amortization occur (if applicable)?
• When does the partnership business begin?

The partnership first must characterize each expenditure as an organizational expenditure, a

start-up expenditure (Chapter C:3), another expenditure to be capitalized, or a current period
expense. The costs of drawing up the partnership agreement and of establishing the accounting
system are organizational expenditures (totaling $3,200). The cost of searching for a retail outlet is a
start-up expenditure ($1,600), and the cost of having an income statement prepared is a current
period expense ($500).

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C:9-5
 The partnership then must decide how it wants to handle the organizational and start-up
expenditures. Because each of these items is less than $5,000, the partnership can elect to deduct the
expenditures currently under Sec. 195 for the start-up expenditures and under Sec. 709 for the
organizational expenditures. If the expenditures had exceeded $5,000 each, the partnership would
amortize the balances over 180 months.
Another issue the partnership must face is when is the partnership is considered to begin
business. Regulation Sec. 1.709-2(c) states that business begins when the partnership "starts the
business operation for which it was organized." Had the expenditures exceeded $5,000,
amortization of both the excess organizational expenditures and the excess start-up expenditures
would begin with the month in which business begins. p. C:9-12.

C:9-21 • Is the receipt of a profits interest in the ABC Partnership in exchange for Cara's
services a taxable event?
• If it is a taxable event, what is the amount and character of the income recognized?
• What is Cara's basis and holding period for her partnership interest?

The receipt of the partnership interest is not a taxable event. Under Rev. Proc. 93-27, 1993-2
C.B. 343, the receipt of a profits interest is taxable only under circumstances where the FMV of the
interest can be readily determined. This situation does not fit into one of the three exceptions
contained in the revenue procedure guidelines as being a taxable event. (Note: The IRS is in the
process of revising its rules concerning partners who contributed services. See Notice 2005-43,
2005-24 C.B. 1221.) pp. C:9-10 through C:9-12.

C:9-22 • What is George's basis in his partnership interest?

• Does the repayment of the partnership liability cause an adjustment to George's basis
in his partnership interest?
• Is the repayment of the nonrecourse liability a taxable event for George? If so, what
is the amount and character of the income reported?

Repayments of partnership liabilities are treated as distributions to the partners. A

distribution made to a partner that exceeds his or her basis for the partnership interest produces a
taxable gain. The gain can be calculated as follows:

Basis at the beginning of the year $15,000

Plus: George's share of income
(0.20 x $20,000) 4,000
George's basis before the distribution $19,000
Minus: George's deemed distribution from
repayment of partnership liability
(0.20 x $100,000) (20,000)
George's recognized gain $ 1,000

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C:9-6
After these adjustments, George’s basis in the partnership interest is zero. Also, the gain is a capital
gain if the “distribution” is deemed proportionate (see Chapter C:10).

pp. C:9-21 through C:9-25.

C:9-23 • What is Katie's deductible loss from her partnership investment?

• What is Katie's Sec. 704(d) basis in her partnership interest?
• What is Katie's at-risk basis in her partnership interest?
• Is the loss from the JKL Partnership a passive loss?
• Does Katie have passive income from this investment or other investments?
• If so, can she deduct her losses?
• If not, do the losses carryover to later years?

As a limited partner, Katie is presumed not to materially participate in the partnership.

Therefore, because the loss is from a passive activity, she cannot deduct it unless she has passive
income from other investments, or she terminates her interest in the limited partnership. If no such
income exists, the losses carry over to later years. pp. C:9-26 and C:9-27.

C:9-24 • Do the family partnership rules apply when no family relationship exists?
• Does reasonable compensation need to be paid to Daniel for his services?
• If so, what is reasonable compensation for Daniel's services?
• Does David need to be recognized as a partner in the CD Partnership?
• If so, what is David's allocable share of the partnership income?
• What is Daniel's allocable share of the partnership income?

The family partnership rules are written in terms of the donor-donee relationship.
Accordingly, they apply in this situation. Both Daniel and David would be allocated a reasonable
compensation amount. Then, the remainder of the income originally allocated to Daniel and David
would be reallocated to them based on their relative capital interests. p. C:9-30.

Problems

C:9-25 a. Neither partner recognizes gain or loss (Sec. 721).

b. Suzanne Bob
Basis of contributed property $59,000 $95,000
Minus: Partnership assumption
of individual liabilities (80,000)*
Plus: Share of partnership liabilities 40,000 40,000*
Basis in partnership $99,000 $55,000

*Alternatively, Bob reduces his basis by $40,000 ($40,000 - $80,000), which is the amount of his
liability assumed by the other partners.

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C:9-7
 c. The partnership takes a carryover basis in each asset: inventory (securities), $14,000;
land, $45,000; and building, $50,000.
d. The partnership’s initial book value is each asset’s FMV at the time of contribution:
inventory, $15,000; land, $40,000; and building, $100,000.
e. Amount realized $20,000
Minus: Adjusted basis ( 14,000)
Realized gain $ 6,000

Precontribution gain of $1,000 ($15,000 FMV at contribution - $14,000 basis) is allocated to

Suzanne. Bob and Suzanne share the remaining $5,000 gain equally. Thus, Suzanne reports $3,500
of gain, and Bob reports $2,500 of gain. The gain is ordinary (and not capital) because the property
was inventory to Suzanne and because the partnership sold the inventory within five years of its
contribution. pp. C:9-5 through C:9-10 and C:9-21 through C:9-24.

C:9-26 a. Fred recognizes ordinary income (compensation) of $15,000. Ed recognizes $89,000

(calculated in Part c below) of Sec. 1231 gain. The other partners recognize no gain or income.
b. The partnership recognizes no gain, loss, or income on the transfers.

c. Al: Cash contribution $ 15,000

Mortgage allocated to partner 19,500
Basis of partnership interest $ 34,500

Bob: Accounts receivable basis to Bob $ -0-

Mortgage allocated to partner 26,000
Basis of partnership interest $ 26,000

Clay: Equipment basis to Clay $ 13,000

Mortgage allocated to partner 19,500
Basis of partnership interest $ 32,500

Dave: Land basis to Dave $ 50,000

Mortgage allocated to partner 19,500
Basis of partnership interest $ 69,500

Ed: Building basis to Ed $ 15,000

Mortgage contributed to partnership* (130,000)
Mortgage allocated to partner* 26,000
Tentative basis (and amount of gain recognized) $ 89,000
Actual basis (basis cannot be less than zero) $ -0-

*Or minus $104,000 ($130,000 - $26,000) mortgage assumed

by other partners

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C:9-8
 Fred: Services contributed by Fred $ 15,000
Mortgage allocated to partner 19,500
Basis of partnership interest $ 34,500

d. Bases: cash, $15,000; accounts receivable, $0; equipment, $13,000; land, $50,000;
building, $15,000; and organizational expenditures, $15,000.
e. Book values: cash, $15,000; accounts receivable, $20,000; equipment, $15,000; land,
$15,000; building, $150,000; and organizational expenditures, $15,000.
f. The building has no depreciation recapture potential because straight-line MACRS
depreciation has been used. However, part or all of a subsequent gain will be classified as Sec. 1250
gain subject to the 25% capital gains tax rate under Sec. 1(h)(l)(D) at the partner level. The
depreciation recapture potential for the office equipment carries over to the partnership. The
partnership will recognize the recapture when it sells or exchanges the property in a taxable
transaction.
g. If Fred's profits interest had an ascertainable value, the result is unchanged. If the
profits interest has no ascertainable value at the time of the transaction, Fred recognizes no income,
and the partnership has no organizational expenditure for which an amortization deduction can be
claimed. Also, under Rev. Proc. 93-27, 1993-2 C.B. 343, the IRS will not treat receipt of a profits
interest as a taxable event unless one of the following events occurs: (1) the profits interest relates to
a substantially certain and predicable income stream, (2) the partner disposes of the interest within
two years of receipt, or (3) the interest is in a publicly traded partnership. (Note: The IRS is in the
process of revising its rules concerning partners who contributed services. See Notice 2005-43,
2005-24 C.B. 1221.)
h. Partnership: Amount realized on sale $ 9,000
Minus: Adjusted basis ( 50,000)
Recognized loss ($41,000)

Dave: Fair market value when contributed $15,000

Minus: Adjusted basis 50,000
Precontribution loss ($35,000)
Total loss $41,000
Minus: precontribution loss ( 35,000)
Postcontribution loss $ 6,000
Precontribution loss $35,000
Plus: Share of postcontribution
loss (0.15 x $6,000) 900
Dave's distributive share of loss $35,900

Other Partners: Postcontribution loss allocated

to other partners ($6,000 - $900) $ 5,100

Each partner can claim his share of the $5,100 loss only when he has sufficient basis in his
partnership interest. pp. C:9-5 through C:9-12, C:9-18, C:9-24, and C:9-25.

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C:9-9
C:9-27 a. Julie and Kay recognize no income on the partnership formation. Susan recognizes
ordinary income equal to the value of the partnership interest received, or $20,000. (Note: The IRS
is in the process of revising its rules concerning partners who contributed services. See Notice
2005-43, 2005-24 C.B. 1221.)
b.

Julie Kay Susan

Basis of property contributed $ -0- $75,000 N/A
Plus: Share of liabilities 16,200 32,400* $ 5,400
Minus: Liabilities assumed by partnership _______ (54,000)*
Plus: Income recognized (for services) $16,200 _______ 20,000
Basis in partnership $53,400 $25,400

*Or minus $21,600 ($54,000 - $32,400) liabilities assumed by other partners.

Basis Book Value

c. and d. Accounts receivable $ -0- $ 60,000

Land 30,000 58,000
Building 45,000 116,000
Organizational expenditure 20,000 20,000
e. All of Kay’s precontribution gain is allocated to her, and no postcontribution gain
remains to be allocated to other partners.

Kay’s gains are analyzed as follows: Land Building

Cash received $40,000 $ 80,000

Plus: Liability assumed by buyer 18,000 36,000
Amount realized $58,000 $116,000
Minus: Adjusted basis ( 30,000) ( 45,000)
Gain realized and recognized $28,000 $ 71,000

Character of gains:
Sec. 1250 gain* $ -0- $ 15,000
Sec. 1231 gain 28,000 56,000
Total $ 28,000 $ 71,000

*The Sec. 1250 property is not subject to depreciation recapture because of straight-line
depreciation, but to the extent of depreciation taken, the gain is Sec. 1250 gain subject to the 25%
capital gains tax rate under Sec. 1(h)(l)(D).

pp. C:9-5 through C:9-12, and C:9-19.

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C:9-10
C:9-28 a. Sean reports $75,000 of ordinary income and has a $75,000 basis in his partnership
interest. The partnership deducts $75,000 as compensation, allocating the deduction to the old
partners (none to Sean). The partnership (and the remaining partners) also recognize gains and
losses as if 20% of each asset had been sold at its FMV to pay for Sean's services. The basis in each
asset having a gain (or loss) related to it will be adjusted upward (or downward) by the amount of
the gain (or loss) recognized. In addition, the $100,000 of current year ordinary income is allocated
as follows under the varying interest rule:

Old partners: (100% x 334/365 x $100,000) + (80% x 31/365 x $100,000) = $98,301

Sean: 20% x 31/365 x $100,000 = $1,699

b. Under Sol Diamond, 33 AFTR 2d 74-852, 74-1 USTC ¶9306 (7th Cir., 1974), if an
ascertainable FMV exists for the interest, such value must be reported as income by Sean and is
deductible by the XYZ Partnership. However, if the 20% interest has no ascertainable FMV, neither
Sean nor the XYZ Partnership has any current tax consequences except that the $100,000 ordinary
income is allocated as in Part a. In addition, under Rev. Proc. 93-27, 1993-2 C.B. 343, the IRS will
not treat receipt of a profits interest as a taxable event unless one of the following events occurs:
(1) the profits interest relates to a substantially certain and predicable income stream, (2) the partner
disposes of the interest within two years of receipt, or (3) the interest is in a publicly traded
partnership. (Note: The IRS is in the process of revising its rules concerning partners who
contributed services. See Notice 2005-43, 2005-24 C.B. 1221.) pp. C:9-10 through C:9-12 and
C:9-18.

C:9-29 Marjorie: Income: $15,000 ($20,000 FMV of interest - $5,000 cash)

Basis in partnership interest: $15,000 income recognized + $5,000 cash
contributed + Marjorie's share of partnership liabilities (not given in
problem).

Eldorado: Capitalizes the $15,000 as part of the capital raised by the partnership. This
amount is a syndication fee and cannot be deducted now nor amortized in the
future as an organizational expenditure. The $5,000 cash contribution
increases the partnership's assets. Marjorie's capital account includes
$15,000 + $5,000, or $20,000.

(Note: The IRS is in the process of revising its rules concerning partners who contributed services.
See Notice 2005-43, 2005-24 I.R.B. 1221.)

pp. C:9-5 through C:9-12.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-11
C:9-30 a.

Possible Tax Year-Ends

6/30 9/30 10/31

Partner Partnership Tax Months Months Months

Name Interest Year Deferred Total Deferred Total Deferred Total

Beta 1/3 6/30 0 .00 9 3.00 8 2.67

Chi 1/3 9/30 3 1.00 0 .00 11 3.67
Delta 1/3 10/31 4 1.33 1 .33 0 .00
2.33 3.33 6.34

The partnership must use a June 30 year-end, or with a Sec. 444 election, a tax year that ends
on March 31, April 30, or May 31.
b. The natural business year that ends on January 31.
c. The partnership would be required to use an October 31 year-end, or the tax year of
the majority partner. Alternatively, with IRS permission, the partnership could use a natural
business year-end (January 31), or with a Sec. 444 election, the partnership could use a tax year that
did not exceed a three-month deferral of income. pp. C:9-12 through C:9-15.

C:9-31 a. December 31. The tax year-end of majority partners Boris and Damien is December 31,
making this the required year-end for the partnership.
b. Yes. Possible year-ends are those that allow for no more than a three-month deferral
from the required December 31 year-end. These year-ends include September 30, October 31, and
November 30. pp. C:9-12 through C:9-15.

C:9-32 Solution appears on next page.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-12
C:9-32 a. and b.
Mark Pamela
Partnership ordinary income items:
Sales $450,000
Minus: Cost of goods sold (210,000)
Gross profit $240,000
Plus: Sec. 1245 gain 33,000
Minus: Ordinary expenses:
Depreciation $27,000
Guaranteed payment 30,000
Business interest 42,000
Meals and entertainment (50%) 5,800 (104,800)
Partnership ordinary income $168,200 $ 84,100 $ 84,100

Separately stated items:

Dividend income $ 15,000 $ 7,500 $ 7,500
T-E interest income 4,000 2,000 2,000
Sec. 1231 gain 18,000 9,000 9,000
Net long-term capital gain ($12,000 - $10,000) 2,000 1,000 1,000
Short-term capital loss (9,000) (4,500) (4,500)
Investment interest expense (9,200) (4,600) (4,600)
Charitable contributions (5,000) (2,500) (2,500)
Nondeductible M&E expense (5,800) (2,900) (2,900)
Nondeductible interest on loan for T-E interest (2,800) (1,400) (1,400)
Guaranteed payment 30,000

c. Mark Pamela*

Beginning basis in partnership interest $150,000 $150,000

Plus: Partnership ordinary income 84,100 84,100
Dividend income 7,500 7,500
T-E interest income 2,000 2,000
Sec. 1231 gain 9,000 9,000
Net long-term capital gain 1,000 1,000
Minus: Distributions (40,000) (40,000)
Reduction in partnership liabilities (7,000) (7,000)
Short-term capital loss (4,500) (4,500)
Investment interest expense (4,600) (4,600)
Charitable contributions (2,500) (2,500)
Nondeductible M&E expense (2,900) (2,900)
Nondeductible interest on loan for T-E interest __(1,400) __(1,400)
Ending basis in partnership interest $190,700 $190,700

*Note: Pamela’s basis calculation does not reflect the guaranteed payment because the increase
for recognition and the decrease for payment net to zero. pp. C:9-16 through C:9-25.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-13
C:9-33

(a) (b) (c) (d)

Financial Taxable Ordinary Separately
Transaction Income Income Income Stated Items

Income
Operating profit $ 94,000 $ 94,000 $ 94,000 $ 31,000
Rental income 30,000 31,000a 15,000
Interest on municipal bonds 15,000 3,000
Interest on corporate bonds 3,000 3,000 20,000
Dividend 20,000 20,000 66,000c
Gain on investment land 60,000 66,000b 10,000
LTCG 10,000 10,000 ( 7,000)
STCL ( 7,000) ( 7,000) 9,000
Sec. 1231 gain 9,000 9,000 44,000
Unrecaptured Sec. 1250 gain 44,000 44,000
Expenses (12,000)
Depreciation ( 39,000) ( 41,000)d ( 29,000)
Interest:
Mortgage ( 18,000) ( 18,000) ( 18,000)
Mun. bond loan ( 5,000) ( 5,000)
Guaranteed payment ( 30,000) -0-e ( 30,000) 30,000
Total $186,000 $ 211,000 $35,000

a
Prepaid rental income is reported for tax purposes when it is received.
b
For financial accounting purposes, the book value of the land was $15,000 and generated a book
gain of $60,000. The tax basis was $6,000 smaller, so the tax gain is $6,000 larger.
c
The precontribution gain of $6,000 ($15,000 - $9,000) must be specially allocated to Jim while the
postcontribution gain of $60,000 ($66,000 total gain - $6,000 precontribution gain) is allocated
ratably to all three partners.
d
MACRS depreciation is used for tax purposes.
e
The guaranteed payment has no net effect on taxable income. The guaranteed payment both
reduces ordinary income and increases separately stated income items that are taxable.

Each partner will be notified of his share of low-income housing expenditures qualifying for the
credit. pp. C:9-16 through C:9-21.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-14
C:9-34 a.

Partner

Items Total Becky Chuck Dawn

Ordinary income $120,000 $24,000 $36,000 $60,000

Long-term capital gain 18,000 3,600 5,400 9,000
Short-term capital loss 6,000 1,200 1,800 3,000
Charitable contribution deduction 20,000 4,000 6,000 10,000

b.

Partnership Becky’s Becky's Chuck’s Chuck's

Total % Amount % Amount

1/1 through 6/30a

Ordinary income $59,507 20% $11,901 30% $17,852
LTCG 8,926 20% 1,785 30% 2,678
STCL 2,975 20% 595 30% 893
Charitable contribution 9,918 20% 1,984 30% 2,975

7/1 through 12/31b

Ordinary income $60,493 25% $15,123 25% $15,123
LTCG 9,074 25% 2,269 25% 2,269
STCL 3,025 25% 756 25% 756
Charitable contribution 10,082 25% 2,521 25% 2,521

a
1/1 through 6/30 is 181 days in a non-leap year.
b
7/1 through 12/31 is 184 days in a non-leap year.

pp. C:9-18 and C:9-19.

C:9-35 Patty:
Ordinary income: $ 3,200 (0.40 x $8,000)
Long-term capital gain:
Precontribution 6,000 ($10,000 - $4,000)
Postcontribution 1,600 [0.40 x ($14,000 - $10,000)]
Total income/gain $10,800

Dave reports $4,800 ($8,000 x 0.60) of ordinary income and $2,400 ($4,000 x 0.60) of long-term
capital gain. p. C:9-19.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-15
C:9-36 As stated in text Example C:9-25, the allocation meets the first test of shifting because the
partners’ capital accounts increase by $10,000 whether with the special allocation or with an equal
allocation. The following calculations show the tax effects of the two allocations:

Special allocation: Andy Becky Total

Taxable interest income $ -0- $10,000

Tax-exempt interest income 10,000 -0-
Total allocation $10,000 $10,000

Taxable income $ -0- $10,000

Times: Tax rate 0.35 0.15
Tax liability $ -0- $ 1,500 $1,500

Equal allocation: Andy Becky Total

Taxable interest income $ 5,000 $ 5,000

Tax-exempt interest income 5,000 5,000
Total allocation $10,000 $10,000

Taxable income $ 5,000 $ 5,000

Times: Tax rate 0.35 0.15
Tax liability $ 1,750 $ 750 $2,500

Thus, shifting occurs because the special allocation does not alter the partners’ capital accounts and
because the special allocation reduces the partners’ total tax liability. Therefore, the special
allocation lacks substantiality. pp. C:9-19 through C:9-21.

C:9-37 a. No. This special allocation does not meet the test of having substantial economic
effect and will not be acceptable to the IRS. In particular, shifting occurs because the special
allocation does not alter the partners’ capital accounts, and the special allocation reduces the
partners’ total tax liability by shifting enough short-term capital gain to Clark to offset his entire
short-term capital loss.
b. The special allocation affects only the partners’ tax consequences and not the
economic consequences. Each partner's distributive share is still $100,000. Accordingly, the special
allocation will not be accepted, and the income must be allocated according to the partners' 50/50
interest in the partnership. The partners must report the following:

Total Clark Lois

Short-term capital gain $ 60,000 $30,000 $30,000

Ordinary income 140,000 70,000 70,000

pp. C:9-19 through C:9-21.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-16
C:9-38 a. The special allocation could have substantial economic effect in Year 1 but not in
Year 2 or Year 3 because Diane does not have an obligation to repay negative capital account
balances.
b. The special allocation will have substantial economic effect in all three years.
c. As in Part a, the special allocation will not have substantial economic effect in Year 2
or Year 3 because Diane will have a negative capital account balance in each year. The liability
increases basis but does not increase her capital account. pp. C:9-19 through C:9-21.

C:9-39 a. Carryover basis of contributed property $14,000

Minus: Debt assumed by other partners (0.80 x $10,000) ( 8,000)
Partnership interest basis $ 6,000

b. Carryover basis from friend $34,000

Plus: Share of partnership liabilities 20,000
Partnership interest basis $54,000

c. The interest's FMV used in valuing the estate ($120,000) is Kelly's basis. pp. C:9-21
through C:9-24.

C:9-40 a. The FMV of the partnership interest, or $25,000.

(Note: The IRS is in the process of revising its rules concerning partners who
contributed services. See Notice 2005-43, 2005-24 C.B. 1221.)
b. Land basis $ 6,000
Car basis 15,000
Cash contributed 2,000
Share of recourse liabilities (0.40 x $100,000) 40,000
Basis in partnership interest $63,000

pp. C:9-21 through C:9-24.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-17
C:9-41 a. Purchase price $ 50,000
Plus: Share of liabilities (0.40 x $200,000) 80,000
Distributive share of taxable items ($30,000 +
$10,000 - $1,000) 39,000
Distributive share of tax-exempt items ($8,000 - $2,000) 6,000
Minus: Change in liabilities (0.40 x $20,000) ( 8,000)
Basis on December 31 $167,000

b. Purchase price $ 50,000

Plus: Share of recourse liabilities (0.30 x $200,000) 60,000
Distributive share of taxable items 39,000
Distributive share of tax-exempt items 6,000
Increase in nonrecourse liabilities (0.40 x $80,000) 32,000
Minus: Reduction in recourse liabilities (0.30 x $100,000) ( 30,000)
Basis on December 31 $157,000

c. Purchase price $ 50,000

Plus: Distributive share of taxable items 39,000
Distributive share of tax-exempt items 6,000
Increase in nonrecourse liabilities (0.40 x $80,000)* 32,000
Basis on December 31 $127,000
*Tina has no economic risk of loss for the recourse liabilities
and therefore receives no basis for these liabilities.

pp. C:9-21 through C:9-24.

C:9-42 a. and b.
Analysis of Outside Basis and At-Risk Basis:
Kerry City Corporation

Outside basis at January 1 $200,000 $200,000

Plus: Short-term capital gain 150,000 150,000
Partnership nonrecourse liability 50,000 50,000
Outside basis before losses $400,000 $400,000
Minus: Reduction for losses (see below) ( 400,000)a ( 400,000)
Outside basis after losses $ -0- $ -0-

At-risk basis before losses $350,000 N/A

Minus: Reduction for losses (350,000)
At-risk basis after losses $ -0-

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-18
 Treatment of Losses: Kerry City Corporation
Losses:
Ordinary loss $450,000 $450,000
Long-term capital loss 50,000 50,000
Total $500,000 $500,000

Loss allowed $350,000a $400,000b

Character of losses allowed:

Ordinary loss (450/500 x loss allowed) $315,000 $360,000
Long-term capital loss (50/500 x loss allowed) 35,000 40,000
Total $350,000 $400,000
a
Kerry’s loss is limited to his at-risk basis. Nevertheless, his outside basis is reduced by $400,000.
b
City Corporation is not subject to the at-risk rules because it is not closely held. Thus, the
corporation’s loss is limited to its outside basis.

c. The qualified nonrecourse liability is considered to be at-risk. Therefore, both

partners can deduct a $400,000 loss and have a zero outside basis for their partnership interest after
the year’s operations. Thus, City Corporation’s results are the same as in Parts a and b, and Kerry’s
results are now the same as City’s. p. C:9-26.

C:9-43

Gary (General Partner-60%) Mary (General Partner-40%)

Tax Basis At-Risk Basis Tax Basis At-Risk Basis

Beginning basis without debt $ 42,000 $42,000 $28,000 $28,000

Recourse debt (accts. pay.) 18,000 18,000 12,000 12,000
Nonrecourse debt 60,000 -0- 40,000 -0-
Basis before losses $120,000 $60,000 $80,000 $40,000
Operating loss* (120,000) (60,000) (80,000) (40,000)
Ending basis $ -0- $ -0- $ -0- $ -0-

*Gary recognizes a $60,000 loss, and Mary recognizes a $40,000 loss, both limited by the at-
risk rules. Nevertheless, Gary and Mary reduce their partnership bases by the full amount of the
losses. They can deduct the disallowed losses in future years if they increase their at-risk bases.
p. C:9-26.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-19
C:9-44 a.

Eve Tom

Beginning basis $46,000 $75,000

Plus: Share of LTCG 8,000 12,000
Basis before loss $54,000 $87,000

Share of loss $56,000 $84,000

Limitations on loss $54,000 $87,000

Sec. 704(d) limit 54,000 87,000a
At-risk limit N/A 12,000b
Passive activity limit

Deductible loss $54,000 $12,000

a
Because the partnership has no nonrecourse liabilities, the at-risk basis equals the
partnership basis for both partners. Thus, the at-risk rules do not limit the losses the partners
can deduct.
b
Eve materially participates in the partnership business, so the partnership's ordinary loss is
an active loss for her. Tom is a limited partner and does not materially participate, so his
deduction for losses is limited to the passive income he earns from this (and all other)
passive activities during this year. Because the problem states that he has no other income
except his salary, Tom can deduct the loss only to the extent of his share of income from this
partnership. This result assumes that the long-term capital gain relates to the partnership’s
operations and is not portfolio income. These rules determine the amount of loss Tom can
deduct. The character (and the treatment of Tom's income on the tax return) remains
$12,000 ordinary loss and $12,000 long-term capital gain.

b. The additional $100,000 recourse debt would increase both the Sec. 704(d) basis and
the at-risk basis for Eve, who has the economic risk of loss. This increase would give her enough at-
risk basis to deduct her full $56,000 distributive share of partnership losses. As a limited partner,
Tom would have a basis increase only if he had some agreement to assume an economic risk of loss
related to the recourse borrowings. Even if he had a basis increase (which is unlikely), Tom could
not deduct any additional loss because the passive activity loss rules still limit passive losses to
passive income.

pp. C:9-26 and C:9-27.

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

C:9-20
Another random document with
no related content on Scribd:
 Het werk van Raffles.

Het was de dag vóór de begrafenis van hertog Bertie Silverton. De

grootste opwinding heerschte in de Londensche hooge kringen. En
allen bespraken de vreeselijke gebeurtenis, de vreeselijke daad, door
de hertogin bedreven.

In zijn bureau in Scotland Yard zat politie-inspecteur Baxter een

geurigen havanna te rooken. Hij dicteerde zijn secretaris Marholm,
bijgenaamd „de vloo”, een proces-verbaal.

Toen dat werk geëindigd was, zuchtte hij eens diep, geeuwde
hoorbaar en zei toen: „Marholm, we hebben vandaag hard gewerkt—
héél hard gewerkt. Ik zal nu wat gaan rusten.”

„Slaap lekker, inspecteur!”

„Slapen? Wie praat er van slapen?”

„O, vraag excuus inspecteur—ik dacht soms, het zou niet voor den
eersten keer zijn!”

„Wàt zou niet voor den eersten keer zijn!” stoof Baxter op met
woedend gebaar! „Zal ik je eens vertellen, wat voor de laatste maal
moet gebeurd zijn? Dat jij zoo’n grooten, brutalen mond opzet tegen
je chef! Hoor je, Marholm, je chef! Pas op, dat ik je niet voor ontslag
voordraag wegens insubordinatie!”

De „vloo” haalde de schouders op, snoof hoorbaar door zijn neus,

blies zware wolken uit zijn pijpje, dat gestopt was met „Amersfoorter”
en zei op uitdagenden toon, want aan Baxters dreigementen had hij
zich nog nooit gestoord:
„O chef, hoogvereerde chef, wat bent u vandaag bijzonder
prikkelbaar. Ik vond u in den laatsten tijd anders steeds in zoo’n goed
humeur! En ik had die goede luim al in verband gebracht met Raffles’
verdwijning uit Londen! Dat was een pak van uw hart, inspecteur!”

Inderdaad!

Het was een pak van het hart geweest van den braven inspecteur,
toen hij hoorde, dat de Groote Onbekende, in gezelschap van zijn
onafscheidelijken secretaris zich voor „onbepaalden tijd” naar het
buitenland had begeven.

En ditmaal was het geen grapje!

Baxter had het gehoord uit de meest betrouwbare bronnen, dat hij
vooreerst geen last of overlast zou hebben van den man, die hem
voortdurend een hinderpaal was geweest op zijn levensweg, die zijn
werklust, zóó hij dien al eens had, verlamde, zijn ijver bekoelde.

Want hoe tientallen van keeren was het niet gebeurd, dat Raffles, de
gentleman-dief den een of anderen misdadiger had opgespoord,
terwijl inspecteur Baxter op dwaalwegen zocht naar den vermeenden
boef.

Baxter dacht aan dat alles en een zucht van verlichting ontsnapte
hem.

Ja, hij was in z’n nopjes, dat die brutale Raffles niet in Londen
woonde.

„Ja, inspecteur,” herhaalde Marholm met een onnoozel gezicht, „dat

was een pak van uw hart, nietwaar?”

„Hou je brutalen mond, of je gaat er op staanden voet uit,” snauwde

Baxter.
„Maar chef!”

„Wat, maar— —”

„M’n mond houden? Ik? Maar als ik niet meer kan praten, dan heb ik
heelemaal niets meer te doen.” [31]

„Je bent de grootste luilak, dien ik ken”, stoof Baxter op.

„Op één na, inspecteur, op één na!”

„En die eene is?”

„Raad eens, inspecteur!”

Marholm had ternauwernood deze woorden gesproken, toen er aan

de deur werd geklopt.

Een kleine jongen, in blauw uniform met zilveren tressen trad binnen.

„Mr. Baxter?”

„Die ben ik!”

„Please, sir!”

De jongen overhandigde een groote, gele enveloppe.

„Van wien?”

„Weet ik niet, sir! Good bye, sir!”

De jongen boog, draaide zich om en verdween.

Baxter, vóór den brief te openen, draaide dien om en om en nog eens

om.
Toen, met een gewichtig air, en alsof hem nu te binnen schoot, dat hij
dit gewichtig epistel wachtte, zei hij:

„Juist, dat zal het schrijven zijn van den referendaris van Zijne
Majesteit!”

„Ik zie anders geen koninklijk wapen,” merkte de „vloo” droog op.

Baxter smoorde een vloek en bromde een verwensching tusschen de

tanden.

Daarna opende hij de envelop, haalde een groot vel papier te

voorschijn en begon te lezen.

Zijn oogen werden hoe langer hoe grooter, zijn mond viel open,
zweetdroppels parelden op zijn voorhoofd.

„Allemachtig,” steunde hij, „alweer die naam!”

Het papier ontgleed zijn handen en Marholm haastte zich, het op te

rapen.

Het eerste, wat „de vloo” zag, was de naam:

JOHN C. RAFFLES.

Toen las hij het volgende:

Londen, Club of Lords.

Hooggeachte Inspecteur Baxter.

Daar ben ik dan eindelijk weer eens op komen dagen—ditmaal om u te

helpen!—

Ge kunt lauweren oogsten. Ga met twee van uw beste detectives (vergeet

ook uw braven secretaris Marholm niet) naar het sterfhuis van Hertog
 Silverton in Onslow Gardens. In de sterfkamer zult ge het vinden. Onder de
achttiende plank van den parketvloer, geteld van het hoofdeinde van het
ledikant, gaande naar rechts, naar den kant van de ramen.

Haast u met uw werk. Ik groet u vriendschappelijk en zal, als het weer te

pas mocht komen, niet nalaten, u danig bij den neus te nemen.

JOHN. C. R.”

De laatste zin was het, die Baxter zoozeer in twijfel bracht, dat hij
besloot, n i e t te gaan.

„Neen, Marholm,” zei hij op een toon vol overtuiging, „we gaan niet.
Raffles is in staat om mij zelfs in een sterfhuis belachelijk te maken
en een zot figuur te doen slaan!”

Marholm’s pijpje dampte als een stoomketel, vóórdat hij antwoordde:

„Als u niet gaat, inspecteur—wel—hm—ziet u—dan ga ik. Dan doe ik

dat zaakje op m’n eigen houtje, ziet u! U kunt van Raffles denken wat
u wilt, maar hij is teveel gentleman om in een sterfhuis kabaal te gaan
schoppen!”

Baxter dacht na—langen tijd. Als Baxter dacht, had hij daarvoor
steeds veel tijd noodig, omdat het denken hem nu juist niet al te vlot
af ging.

„Goed, Marholm, ik zal nog eens, maar voor het laatst in mijn leven,
je raad opvolgen! We zullen over een uur naar Onslow Gardens
optrekken!”

En aldus geschiedde!

Heel het Vereenigd Koninkrijk was verbijsterd, toen het uit de

dagbladen vernam, hoe Hertog Adelbert Silverton, die onder zulke
verdachte omstandigheden het tijdelijke met het eeuwige had
verwisseld, zich niet had ontzien, om door een laaghartige daad—de
laatste uit zijn leven—zijn geslacht te bezoedelen.

Van heinde en verre stroomden inspecteur Baxter de gelukwenschen

toe, en allerwege werd zijn speurderszin geroemd.

De hooge borst van den inspecteur van Scotland Yard zwol en zwol
—steeds hooger.

Totdat aan al die roem en eer een einde kwam op een wijze, die viel
als een ratelende donderslag aan helderen hemel.

Een week nadat Hertogin Lily Silverton haar eer en goeden naam
had teruggekregen, kon men in de groote Londensche bladen lezen:

Het werk van John C. Raffles.

Niet Baxter, den goedigen, genoeglijken inspecteur van Scotland Yard

komt de hooge eer toe, de ware toedracht van Hertog Silvertons
[32]rampzalig einde aan het licht te hebben gebracht.

Het was niemand anders dan de Groote Onbekende gentleman-dief, John

C. Raffles, die, na zich van den toestand in den Huize Silverton op de
hoogte te hebben gesteld, de afwikkeling der zaak overliet aan James
Baxter, nadat hij dezen er van had verwittigd.

Hulde aan John C. Raffles, den kampioen voor verdrukten en

onrechtvaardig bejegenden!”

In een noot had de „Times” nog aan dit bericht toegevoegd:

„Wij betreuren het, dat inspecteur Baxter geen belangrijker rol had
gespeeld in deze interessante geschiedenis dan die van—stroopop”.

Toen Baxter, in zijn bureau-stoel gezeten, dit bericht met de

toevoeging las, was hij een beroerte van ergernis nabij.
Hij smeet zijn inktpot aan stukken en kneep, van louter woede, een
handvol havanna’s aan stof.

Toen hij een beetje uitgeraasd had, wendde hij zich tot Marholm, die
rustig z’n pijpje dampte.

„Marholm,” barstte hij los, „als ik wist, dat jij—dan—dan—”

De „vloo” draaide z’n stoel een halven slag om, deed een flinken haal
en zei:

„Beste, Hollandsche tabak, chef. En—uitstekend voor de zenuwen!

Wilt u niet eens opsteken?”

[Inhoud]

Titel van het volgend nummer (117):

DE MUSEUMDIEFSTAL.

[Inhoud]
 Fotografeeren verhoogt het
Reisgenot!

-camera’s Vraagt het gratis

en foto-artikelen zijn handboekje No. 3 bij
de besten.
— — E. FISCHEL Jr. — —
„IMPERIAL”
platen 88, GELDERSCHEKADE
—AMSTERDAM
zijn de snelste en
meest betrouwbare. Levering naar het Buitenland
uitsluitend tegen vooruitzending
Verkrijgbaar in
van het bedrag.
elken Foto-handel.

[33]

[Inhoud]
Veel wordt als RIJwiel aangeboden dat
eigenlijk VERKOOPwiel moest heeten.
Een rijwiel in den echten zin des woords
is een

BURGERS

E. N. R.
Het voldoet aan de

allerstrengste eischen.
 Inhoudsopgave

I. Een hertogin in zicht. 1

II. O, wat een verrassing. 7
III. Van Pensionhoudster tot Hertogin. 10
IV. Een opzienbarende dood. 13
V. De chef van „het vak”. 17
VI. De vermomming. 22
VII. In de sterfkamer. 25
VIII. Het werk van Raffles. 30
 Colofon
Beschikbaarheid

Dit eBoek is voor kosteloos gebruik door iedereen overal, met vrijwel
geen beperkingen van welke soort dan ook. U mag het kopiëren,
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Gutenberg Licentie in dit eBoek of on-line op www.gutenberg.org ↗️.

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Metadata

Titel: Lord Lister No. 116: Een drama uit de

groote wereld
Auteur: Theo von Blankensee [Pseudoniem van Info ↗️
Mathias Blank (1881–1928)]
Auteur: Kurt Matull (1872–1930?) Info ↗️
Aanmaakdatum 2023-10-25 21:19:38 UTC
bestand:
Taal: Nederlands (Spelling De Vries-Te
Winkel)
Oorspronkelijke [1915]
uitgiftedatum:
Trefwoorden: Detective and mystery stories --
Periodicals
Dime novels -- Periodicals

Codering

Dit boek is weergegeven in oorspronkelijke schrijfwijze. Afgebroken

woorden aan het einde van de regel zijn stilzwijgend hersteld.
Kennelijke zetfouten in het origineel zijn verbeterd. Deze
verbeteringen zijn aangegeven in de colofon aan het einde van dit
boek.

Documentgeschiedenis

2023-10-19 Begonnen.

Verbeteringen

De volgende verbeteringen zijn aangebracht in de tekst:

Bladzijde Bron Verbetering Bewerkingsafstand

1 EERSTE
[Niet in bron] HOOFDSTUK. 17
1 pennemeisje pennemesje 1
Passim. [Niet in bron] „ 1
2 Willebald Willibald 1
3, 3, 3, 6 [Niet in bron] „„ 2
3, 5, 6,
16, 16,
19 [Niet in bron] ” 1
4, 18 , [Verwijderd] 1
5 Crafton Crofton 1
5 Malwoord Malwood 1
6 ’? ” 2
6 ” [Verwijderd] 1
6 Simkens Simkins 1
6 Croften Crofton 1
7 verfraaiïng verfraaiing 1/0
8 soiree’s soirée’s 1/0
8 gracieuse gracieuze 1
9 Whight Wight 1
10 visite-kaartje visitekaartje 1
10 Wiliams Williams 1
10, 21 [Niet in bron] , 1
10, 15 pensioen pension 1
10 soiree soirée 1/0
11 ,„ 2
12 pas past 1
13 Clandon-street Clandonstreet 1
15 eenwige eeuwige 1
16 Rafles Raffles 1
16 vin vind 1
16 . ? 1
19 Allright All right 1
19 Boujour Bonjour 1
19, 30 Scotland-Yard Scotland Yard 1
20 Onslaw Onslow 1
20 Vossehol Vossenhol 1
20 waarop waarom 1
22 Vermomming vermomming 1
23 cosmethiek cosmetiek 1
23 vasseline vaseline 1
23 echttelieden echtelieden 1
25 tweemal tweemaal 1
25 volgslagen volslagen 1
26 observatiepast observatiepost 1
28 Annsberg Ansberg 1
28 terech-
wijzingen terechtwijzingen 1
29 Perzische Perzisch 1
29 danse Danse 1
29 ’ ” 1
29 sterk sterke 1
30 havannah havanna 1
30 insubordonatie insubordinatie 1
30 bekoelden bekoelde 1
30 Ruffles Raffles 1
31 Bascher Baxter 3
*** END OF THE PROJECT GUTENBERG EBOOK LORD LISTER
NO. 0116: EEN DRAMA UIT DE GROOTE WERELD ***

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