Day 762
DIET
Pretty happy with the meals I chose today. Started lunch with tomato fish and ended dinner with tofu and rice.
EXERCISES
Injury is not going away, but it isn't getting worse. Still feel the same pain at around the same weight. I'll need to check out an ART doctor hopefully next week or later this week.
- Back Squats - 30+ reps total with 275 over multiple sets.
- Good Mornings
- Box Squats
- Pistol Squats
- Jump Squat - 1 Set
- FST-7 Leg Extensions
- Calf Raises
EXTRA ACTIVITIES
Took out the longboard again today. I feel so free with this under my feet.
COMMENTS
Cost accounting. CPA class. Gym. CPA review. That is basically how my day went. Nothing really exciting but the work needs to get done.
INTERESTING CPA TIDBITS OF THE DAY
The government is very clever when it comes to you recognizing gains and losses. In a partnership scenario, if you contribute property to become part of the partnership, you generally recognize no gains or losses. What ever difference between the fair market value and your adjust basis will be classified as a pre-contribution gain or loss (Section 704(c)). This seems great if you have a gain since you don't need to recognize anything for tax purposes. The government will actually make you recognize the pre-contribution gain on disposal of the asset. So you will end up paying taxes on the asset you contributed to the partnership. Simultaneously, your outside basis in the partnership will increase to reflect the taxation on the gain.
Two interesting scenarios exist with the distribution of the contributed property. The first scenario is where the partnership distributes the property to another partner. If this distribution occurs within 7 years, a few things must happen. The original contributor of the property must recognize gains or losses and the original basis of the property must be adjusted by the gains or loss. This makes sense since these gains and losses don't just disappear. The original basis is updated to reflect the basis of the property that the receiver of the property gets out of the partnership. Looking at each partner's outside basis, the original contributor must adjust his or her basis by the gain or loss and the receiver of the property must reduce basis by the new asset basis to reflect the distribution.
In the second scenario, a distribution of property is made to a partner that originally made the pre-contribution gain. This time the government attempts to prevent you from deferring your gains. Iif the distribution is made within 7 years, we must recognize the lesser of the pre-contribution gain or the fair market value of the distributed asset (different asset then what you put in, I'll call it Asset 2) and the partner's outside basis. Once we figure out how much gain we must recognize, we go through a similar process as above. The outside basis in the partnership is decreased by the basis in Asset 2. This makes sense because we are distributing property. In addition, the outside basis is further increased by the gain recognized. Again, with a taxable gain from pre-contribution, we can recognize additional basis. Finally, we adjust the basis in Asset 1 (our first contributed property that had the pre-contribution gain) for the gain recognize. This will reduce the inherent pre-contribution gain if there is any left.