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Jason, a Lawyer, Provided Legal Services for the Employees of the ABC

Question 54

Essay

Jason, a lawyer, provided legal services for the employees of the ABC Partnership during the first six months of the current year. In exchange, he received a 2% capital and profits interest in the partnership. The value of the interest is $5,000. What are the tax consequences to Jason, the ABC Partnership, and the employees of ABC?

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Jason must include the $5,000 in his cur...

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