Explain how this is different for an operating versus liquidating distribution.

a). Partnerships and Tax Consequences”
• Judy decided to dispose of her partnership interest in the ILK partnership. She has asked you to help her determine what the tax consequences will be for the disposition of her partnership interest, including how the amount is determined and the character of the gain or loss. Please share the advice you would give to Judy and explain how this is different for an operating versus liquidating distribution.

b). Explaining the Basics of S-Corporations”
• You are the lead S-Corporations tax specialist in your area. Your client, Cathryn, has purchased an S Corporation and needs to be versed on how this type of corporation works. Identify three operating issues (e.g. accounting period, income/loss allocation, operating/liquidating distributions, stock basis calculations, fringe benefit rules) that Cathryn should be aware of in managing this form of business.