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Tax Effects and Method for Changing from partnership to corporation

The partners of JPG Partnership want to change the form of entity from a partnership to a corporation. The corporation can be formed in several ways: The partnership can distribute the assets to the partners who then contribute the assets to the corporation. The partnership can transfer the assets directly to the corporation. The partners can transfer their partnerhip interest to the corporation. Write a memo outlining the tax effects of the various methods of forming the corporation.

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Date : [date]
To : [Partner 1 name]
[Partner 2 name]
[Partner 3 name]
JPG Partnership
From : [Name]
[Company]
Subject : Tax impact of Partnership reorganization to a Corporation

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Based from our conversation, I gathered that you are exploring the possibility of reorganizing JPG Partnership into a corporate entity. In this regards there are three ways this can be done:

1. The partnership can distribute the assets to the partners who then contribute the assets to the corporation.
2. The partnership can transfer the assets directly to ...

Solution Summary

The tax effects and methods for changing from partnership to corporations is determined. The expert writes a memo outlining the facts.

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