Julieta Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121.
Question:
Julieta Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Julieta plans for the corporation to make a charitable contribution to the University of Washington, a qualified public charity. She will have the corporation donate Jaybird Corporation stock, held for five years, with a basis of $11,000 and a fair market value of $25,000. Julieta projects a $310,000 net profit for Simms Corporation in 2019 and a $100,000 net profit in 2020. Julieta calls you on December 11, 2019, and asks whether Simms should make the contribution in 2019 or 2020. Write a letter advising Julieta about the timing of the contribution.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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South-Western Federal Taxation 2020 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109175
23rd Edition
Authors: Annette Nellen, James C. Young, William A. Raabe, David M. Maloney