Questions from Federal Taxation

Q: Give an example of tax planning between a shareholder/employee and

Give an example of tax planning between a shareholder/employee and a related corporation.

Q: Jim received a six-month extension (to October 15,

Jim received a six-month extension (to October 15, 2018) to file his 2017 tax return. Jim actually filed the return on October 20, 2018, paying the $20,000 amount due at that time. He has no reasonabl...

Q: Examples 12-2 and 12-3 in this chapter concern

Examples 12-2 and 12-3 in this chapter concern a decision between the same two mutually exclusive alternatives under identical conditions, except for the corporation’s marginal tax rate. In Example 12...

Q: On creating a new 100 percent-owned corporation, Ben was

On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50 percent of the total amount that was invested as a loan and 50 percent as a purchase of corporate sto...

Q: Discuss the penalties imposed on TRPs. Who is a preparer,

Discuss the penalties imposed on TRPs. Who is a preparer, what is defined as a tax return preparation, and what is not considered preparation?

Q: Julia currently is considering the purchase of some land to be held

Julia currently is considering the purchase of some land to be held as an investment. She and the seller have agreed on a contract under which Julia would pay $1,000 per month for 60 months, or $60,00...

Q: George, a high-bracket taxpayer, wishes to shift some

George, a high-bracket taxpayer, wishes to shift some of his own taxable income from corporate bonds he owns to his 25-year-old daughter, Debra, so that Debra rather than George is taxed on the intere...

Q: Assume that a taxpayer can choose when he is to receive $

Assume that a taxpayer can choose when he is to receive $10,000 of fully taxable income. If the taxpayer receives the income at the end of Year 1, he will receive exactly $10,000. If he delays receipt...

Q: A taxpayer can invest $10,000 in a taxable 10

A taxpayer can invest $10,000 in a taxable 10-year bond that yields an annual pretax return of 6 percent or buy land (a capital asset) for $10,000 that is expected to increase at an annual pretax rate...

Q: Greg Jones lives in Augusta, Georgia, and has the opportunity

Greg Jones lives in Augusta, Georgia, and has the opportunity to rent his condominium during the next Masters golf tournament. He has two offers—one to rent for 10 days at $500 per day and the other t...