Mr Wilson is a self employed consultant and a resident of Denver, CO During 2022, he works four days a week in Portland, OR He has no work in Denver during the year Following the theory and conclusion of Brown v Comm (T C Memo 2019 30), Mr Wilson should Deduct all travel expenses to and from Portland Deduct only 50 of the travel expenses to and from Portland since he has two tax homes for the year Not deduct his airfare to and from Portland but can deduct his other travel expenses Not deduct any travel expenses as Portland is considered his tax home for the year Tali and Jayanth are joint owners of Green Inc and Cream Inc , both S corporations In 2022, Cream loans $50,000 to Green Following the form over substance precedent referred to in Messina, CA 9, No 18 70186, how does this loan impact the owners' debt basis in Green Inc $0 impact to the debt basis for each owner $25,000 increase to the debt basis for each owner $25,000 decrease to the debt basis for each owner $50,000 increase to the debt basis for each owner On which form should an S corporation shareholder attach the basis computation Schedule B Schedule E Schedule 1 Schedule 3 What is the main difference between a partnership and an S corporation specifically with regard to the death of an owner In a partnership, the estate must liquidate its interest in the partnership within one year of the date of death In an S corporation, the estate assumes the role of the deceased owner In an S corporation, the estate must liquidate its interest in the corporation within one year of the date of death In a partnership, the estate assumes the role of the deceased owner In a partnership, the heirs receive a step up in basis of all the partnership assets In an S corporation, the heirs receive a step up of basis in the shares of the corporation In an S corporation, the heirs receive a step up in basis of all the corporation's assets In a partnership, the heirs receive a step up of basis in the partnership interest

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 28, 2024

Mr. Wilson is a self-employed consultant and a resident of Denver, CO. During 2022, he works four days a week in Portland, OR. He has

Mr. Wilson is a self-employed consultant and a resident of Denver, CO. During 2022, he works four days a week in Portland, OR. He has no work in Denver during the year. Following the theory and conclusion of Brown v. Comm (T.C. Memo 2019-30), Mr. Wilson should:

Deduct all travel expenses to and from Portland.
Deduct only 50% of the travel expenses to and from Portland since he has two tax homes for the year.
Not deduct his airfare to and from Portland but can deduct his other travel expenses.
Not deduct any travel expenses as Portland is considered his tax home for the year.

Tali and Jayanth are joint owners of Green Inc. and Cream Inc., both S corporations. In 2022, Cream loans $50,000 to Green. Following the "form over substance" precedent referred to in Messina, CA-9, No. 18-70186, how does this loan impact the owners' debt basis in Green Inc.?

$0 impact to the debt basis for each owner.
$25,000 increase to the debt basis for each owner.
$25,000 decrease to the debt basis for each owner.
$50,000 increase to the debt basis for each owner.

On which form should an S corporation shareholder attach the basis computation?

Schedule B
Schedule E
Schedule 1
Schedule 3

What is the main difference between a partnership and an S corporation specifically with regard to the death of an owner?

In a partnership, the estate must liquidate its interest in the partnership within one year of the date of death. In an S corporation, the estate assumes the role of the deceased owner.
In an S corporation, the estate must liquidate its interest in the corporation within one year of the date of death. In a partnership, the estate assumes the role of the deceased owner.
In a partnership, the heirs receive a step-up in basis of all the partnership assets. In an S corporation, the heirs receive a step-up of basis in the shares of the corporation.
In an S corporation, the heirs receive a step-up in basis of all the corporation's assets. In a partnership, the heirs receive a step-up of basis in the partnership interest.