All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
taxation of individuals

Questions and Answers of Taxation of Individuals

Research Problem 4. Prepare an outline of a speech on the topic “Should a Millennial Establish a Roth IRA and Contribute to It?” for your school’s Investment Club.
Research Problem 5. Isabelle was contemplating making a contribution to her traditional IRA in 2020. She determined she would contribute $6,000 in December 2020 but forgot about making the
1. Linda is an employee of JRH Corporation. Which of the following would be included in Linda’s gross income?a. Premiums paid by JRH Corporation for a group term life insurance policy for$50,000 of
2. Bob and Nancy are married and file a joint return in 2020. They are both under age 50 and employed, with wages of $50,000 each. Their total AGI is $112,000. Neither of them is an active
3. Where is the deduction for qualified business income (QBI) applied in the individual tax formula?a. As an adjustment to arrive at adjusted gross incomeb. As an itemized deductionc. As an
4. Which of the following is considered a specified service trade or business (SSTB)for purposes of the qualified business income deduction?a. Accounting firmb. Manufacturing companyc. Engineering
5. Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000.During the year, Bob purchased
6. What is the basic deduction calculation for the qualified business income deduction?a. 30% 3 Qualified business income (QBI)b. 20% 3 W–2 wagesc. 20% 3 Qualified business income (QBI)d. 30% 3
7. Which of the following is the overall limitation to the qualified business income(QBI) deduction?a. Lesser of: 50% of combined QBI or 20% of the taxpayer’s taxable income in excess of net
8. Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade or business:Filing status: Single Taxable income: $100,000 Net capital gains: $0 Qualified business income
9. Calculate the taxpayer’s 2021 qualified business income deduction for a qualified trade or business:Filing status: Single Taxable income: $180,000 Net capital gains: $0 Qualified business income
9. Dakota Conrad owns a parcel of land he would like to sell.Describe the circumstances in which the sale of the land would generate §1231 gain or loss, ordinary gain or loss, or capital gain or
10. Lincoln has used a piece of land in her business for the past five years. The land qualifies as §1231 property. It is unclear whether Lincoln will have to recognize a gain or loss when she
11. Explain Congress’s rationale for depreciation recapture.
12. Compare and contrast §1245 recapture and §1250 recapture.
13. Why is depreciation recapture not required when assets are sold at a loss?
14. What are the similarities and differences between the tax benefit rule and depreciation recapture?
16. How is unrecaptured §1250 gain for individuals similar to depreciation recapture? How is it different?
17. Explain why gains from depreciable property sold to a related taxpayer are treated as ordinary income under §1239.
20. Explain the purpose behind the §1231 look-back rule.
21. Does a taxpayer apply the §1231 look-back rule in a year when the taxpayer recognizes a net §1231 loss? Explain.
26. Salazar Inc., a Colorado company, is relocating to a nearby town. It would like to trade its real property for some real property in the new location. While Salazar has found several prospective
32. Rafael sold an asset to Jamal. What is Rafael’s amount realized on the sale in each of the following alternative scenarios?a. Rafael received $80,000 cash and a vehicle worth $10,000.Rafael
36. Hannah Tywin owns 100 shares of MM Inc. stock. She sells the stock on December 11 for $25 per share. She received the stock as a gift from her Aunt Pam on March 20 of this year when the fair
40. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000.Between the date of the purchase and the date of the sale, Canon depreciated
41. In year 0, Longworth Partnership purchased a machine for$40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the
45. Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented
47. Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the
49. Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:Asset Sales Price Cost Accumulated Depreciation Building $650,000 $642,000
51. Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6.a. Assuming Bourne reported $50,000 of nonrecaptured net§1231 losses during years 1–5, what amount of Bourne’s
52. Tonya Jefferson (single), a sole proprietor, runs a successful lobbying business in Washington, DC. She doesn’t sell many business assets, but she is planning on retiring and selling her
53. Morgan’s Water World (MWW), an LLC, opened several years ago. MWW has reported the following net §1231 gains and losses since it began business. Net §1231 gains shown are before the look-back
55. Independence Corporation needs to replace some of the assets used in its trade or business and is contemplating the following exchanges:Exchange Asset Given Up by Independence Asset Received by
61. Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows:Transferred FMV Original Basis
65. Ken sold a rental property for $500,000. He received $100,000 in the current year and $100,000 each year for the next four years. Of the sales price, $400,000 was allocated to the building and
66. Hill Corporation is in the leasing business and faces a marginal tax rate of 21 percent. It has leased a building to Whitewater Corporation for several years. Hill bought the building for$150,000
67. Deirdre sold 100 shares of stock to her brother, James, for$2,400. Deirdre purchased the stock several years ago for$3,000.a. What gain or loss does Deirdre recognize on the sale?b. What amount
69. Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000 and it has claimed $23,000 of depreciation expense against the
70. Fontenot Corporation sold some machinery to its majority owner Gray (an individual who owns 60 percent of Fontenot). Fontenot purchased the machinery for $100,000 and has claimed a total of
71. Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this
73. WAR (We Are Rich) has been in business since 1986. WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment. Hack & Hack
1. LO.4 Enerico contributes $100,000 cash in exchange for a 40% interest in the calendar year ABC LLC. This year ABC generates $80,000 of ordinary taxable income and has no separately stated items.
2. LO.2 Henrietta transfers cash of $75,000 and equipment with a fair market value of $25,000 (basis to her as a sole proprietor, $10,000) in exchange for a 40%profit and loss interest worth $100,000
3. LO.2 Wozniacki and Wilcox form Jewel LLC, with each investor receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives the one-half interest as compensation for tax
4. LO.5 At the beginning of the tax year, Barnaby’s basis in the BBB Partnership was$50,000, including his $5,000 share of partnership debt. At the end of the tax year, his share of the entity’s
5. LO.3 Candlewood LLC began its business on September 1; it uses a calendar tax and an accounting year. Candlewood incurred $6,500 in legal fees for drafting the LLC’s operating agreement and
6. L O.4, 5 Franco owns a 60% interest in the Dulera LLC. On December 31 of the current tax year, his basis in the LLC interest is $128,000. The fair market value of the interest is $140,000. Dulera
7. L O.4, 5 When Bruno’s basis in his interest in the MNO LLC is $150,000, he receives cash of $55,000, a proportionate share of inventory, and land in a distribution that liquidates MNO and his
8. LO.2 Janda and Kelsey contributed $1,000,000 each to the JKL LLC in exchange for 45% capital and profits interests in the entity. Lilli will contribute no cash but has agreed to manage the LLC’s
9. LO.2 Emma and Laine form the equal EL Partnership. Emma contributes cash of$100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000.a. How much
10. LO.2 Kenisha and Shawna form the equal KS LLC with a cash contribution of$360,000 from Kenisha and a property contribution (adjusted basis of $380,000, fair market value of $360,000) from
11. LO.2 Liz and John formed the equal LJ Partnership on January 1 of the current year.Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000.
12. LO.2, 5 Sam and Drew are equal members of the SD LLC, formed on June 1 of the current year. Sam contributed land that he inherited from his uncle Garza in 2009. Garza had purchased the land in
13. L O.2, 5 Continue with the facts presented in Problem 12. At the end of the first year, SD distributes $100,000 cash to Sam. No distribution is made to Drew.a. How does Sam treat the payment?b.
14. LO.3 On July 1 of the current year, the R&R Partnership was formed as a limited partnership to operate a bed-and-breakfast. The partnership paid $3,000 in legal fees for drafting the partnership
15. LO.2, 4 Phoebe and Parker are equal members of Phoenix Investors LLC. They are real estate investors who formed the entity several years ago with equal cash contributions. Phoenix then purchased
16. LO.4, 5, 7 Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so
17. LO.7 This year, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10%
18. LO.6 Tobias is a 50% partner in Solomon LLC, which does not invest in real estate.On January 1, Tobias’s adjusted basis for his LLC interest is $130,000, and his at-risk amount is $105,000. His
19. LO.3 Cerulean, Inc., Coral, Inc., and Crimson, Inc., form the Three Cs Partnership on January 1 of the current year. Cerulean is a 50% partner, and Crimson and Coral are 25% partners. For
20. LO.2, 4, 5 The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $600,000 to the partnership in exchange
21. LO.2, 5 Lee, Brad, and Rick form the LBR Partnership on January 1 of the current year. In return for a 25% interest, Lee transfers property (basis of $15,000, fair market value of $17,500)
22. LO.2, 5 Assume the same facts as in Problem 21, except that the property contributed by Lee has a fair market value of $27,500 and is subject to a nonrecourse mortgage of $20,000.a. What is
23. LO.5, 6 The BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the tax year. The partnership reported a loss for the year, and Brad’s share of the loss is
24. LO.2, 3 The Parakeet Partnership was formed on August 1 of the current year and admitted Morlan and Merriman as equal partners on that date. The partners both contributed $300,000 of cash to
25. LO.4 Bill and Mary filed a joint Federal income tax return this year. Mary owns a 30% interest in MAJIC Partnership, a women’s dress boutique. Mary’s share of the partnership’s net income
26. LO.7 Four GRRLs Partnership is owned by four unrelated friends. Lacy holds a 40%interest; each of the others owns 20%. Lacy sells investment property to the partnership for its fair market value
27. LO.7 Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual
28. LO.4, 7 Ming and Denise, mother and daughter, operate a local restaurant as an LLC. The MD LLC earned a profit of $200,000 in the current year. Denise’s equal LLC interest was acquired by gift
29. LO.5 In each of the following independent cases in which the partnership owns no hot assets, indicate the following. All of the partners received proportionate distributions.• Whether the
30. LO.4, 5, 7 At the beginning of the tax year, Melodie’s basis in the MIP LLC was$60,000, including Melodie’s $40,000 share of the LLC’s liabilities. At the end of the year, MIP distributed
31. LO.2, 4, 5 Suzy contributed assets valued at $360,000 (basis of $200,000) in exchange for her 40% interest in Suz-Anna GP (a general partnership in which both partners are active owners). Anna
32. LO.2, 4, 5, 8 Continue with the facts presented in Problem 31, except that Suz-Anna was formed as an LLC instead of a general partnership.a. How would Suz-Anna’s ending liabilities be
33. LO.4 The Sparrow Partnership plans to distribute $200,000 cash to its partners at the end of the year. Marjorie is a 40% partner and would receive $80,000. Her basis in the partnership is only
1. Ryan Ross (111-11-1112), Oscar Omega (222-22-2223), Clark Carey (333-33-3334), and Kim Kardigan (444-44-4445) are equal active members in ROCK the Ages LLC.ROCK serves as agent and manager for
1. What is the function of a partner’s capital account under the rules of generally accepted accounting principles (GAAP)? What is the partner’s initial balance in the capital account? How and
2. Jim Dunn, Amy Lauersen, and Tony Packard have agreed to form a partnership. In return for a 30% capital interest, Dunn transferred machinery (basis $268,000, fair market value $400,000) subject to
3. To what extent are the personal assets of a general partner, limited partner, or member of an LLC subject to (a) contractual liability claims, such as trade accounts payable, and (b) malpractice
Research Problem 1. Your clients, Grayson Investments, Inc. (Ana Marks, President), and Blake Caldwell, each contributed $200,000 of cash to form the Realty Management Partnership, a limited
Research Problem 2. Barney Chang and Aldrin, Inc., a domestic C corporation, have decided to form BA LLC. The new entity will produce a product that Barney recently developed and patented. Barney and
Research Problem 3. Find an article posted by a law firm that comments on pitfalls to avoid in drafting partnership agreements. Ideally, use the home page of a firm that has offices in your state.
Research Problem 4. Find a blog that concentrates on the taxation of partners and partnerships. Post a message defining the terms inside basis and outside basis and illustrating why the distinction
Research Problem 5. Determine the statutory tax treatment in your state of a onemember LLC. Write an e-mail to your professor comparing this rule with Federal tax law.
Research Problem 6. Construct a graph that shows the increases in the numbers of LLCs and LLPs filing Federal tax returns for five-year periods beginning with 1970.Explain any trends in the data that
1. Gray is a 50% partner in Fabco Partnership. Gray’s tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributions to the partners during year 4 and recorded the
2. Nick, Chris, Stacey, and Mike are each 25% partners in Liberty Partnership, a general partnership. During the current year, the partnership had revenues of $300,000 and nonseparately allocated
3. Duffy Associates is a partnership engaged in real estate development. Olinto, a civil engineer, billed Duffy $40,000 in the current year for consulting services rendered.In full settlement of this
4. On January 2 of the current year, Black acquired a 50% interest in New Partnership by contributing property with an adjusted basis of $7,000 and a fair market value of$9,000, subject to a mortgage
5. At partnership inception, Black acquires a 50% interest in Decorators Partnership by contributing property with an adjusted basis of $250,000. Black recognizes a gain if:I. The fair market value
6. When a partner’s share of partnership liabilities increases, that partner’s basis in the partnership interest:a. Increases by the partner’s share of the liabilities.b. Decreases by the
7. Peter, a 25% partner in Gold & Stein Partnership, received a $20,000 guaranteed payment in the current year for deductible services rendered to the partnership.Guaranteed payments were not made to
8. Hart’s adjusted basis of his interest in a partnership was $30,000. He received a nonliquidating distribution of $24,000 cash plus a parcel of land with a fair market value and partnership basis
4. Fred is retired and living on his pension. He has accumulated almost $1 million of property he would like to leave to his children. However, Fred is afraid that the federal estate tax will
5. Define fair market value for transfer tax purposes.
10. Under what circumstances will a deposit of cash to a bank account held in joint tenancy be considered a complete gift?
11. Explain how a purchase of realty could result in a taxable gift.
12. Describe the conditions for using the annual exclusion to offset an otherwise taxable transfer.
13. List the conditions for making an election to split gifts.
14. Describe the limitations on the deduction of transfers to charity.
20. Explain how a remainder and an income interest are valued for transfer tax purposes.

Showing 2000 - 2100 of 4118

First
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved