A partner sells a partnership interest for $75,000 cash. The partner's adjusted outside basis is $52,000, and selling expenses are $3,000. Ignoring section 751 character reclassification, what total gain is realized?
A. $23,000
B. $20,000
C. $26,000
D. $72,000
Source: PRIMARY -- Publication 541, heading 'Disposition of Partner's Interest,' amount realized and adjusted basis (https://www.irs.gov/publications/p541)
A sole proprietor qualifies to deduct actual expenses for business use of a home and must calculate the allowable amount and any carryover. Which form generally performs that calculation?
A. Form 8829
B. Form 940
C. Form 990-PF
D. Form 6252
Source: PRIMARY -- IRS page 'About Form 8829, Expenses for Business Use of Your Home,' purpose statement (https://www.irs.gov/forms-pubs/about-form-8829)
A business gives one customer a $90 holiday gift during 2025. The gift is not entertainment, has no incidental-cost adjustment, and no exception applies. What is the general deduction limit for the gift to that recipient?
Source: PRIMARY -- Publication 463, chapter 3, heading '$25 limit on business gifts' (https://www.irs.gov/publications/p463)
An estate has $35,000 of distributable net income and makes a deductible distribution of $50,000 to its sole beneficiary. There is no tax-exempt income or other adjustment. What is the estate's maximum income distribution deduction under the stated facts?
A. $35,000
B. $50,000
C. $15,000
D. $0
Source: PRIMARY -- 2025 Instructions for Form 1041, Schedule B, lines 9 through 15 and DNI limitation (https://www.irs.gov/instructions/i1041)
A sole proprietor borrows $100,000 and uses $70,000 for business equipment and $30,000 for a personal vacation. The loan incurs $8,000 of interest, and no limitation other than tracing applies. How much interest is allocable to the business use?
A. $8,000
B. $2,400
C. $5,600
D. $7,000
Source: PRIMARY -- Publication 535, chapter 4, heading 'Allocation of Interest' and tracing disbursements to uses (https://www.irs.gov/publications/p535)
