Questions from Federal Taxation

Q: a. Explain the principal difference in the tax treatment of an

a. Explain the principal difference in the tax treatment of an S corporation and a C corporation. b. Why would a C corporation be used if an S corporation is generally exempt from tax?

Q: Assume that it is December 31, and that Jake is considering

Assume that it is December 31, and that Jake is considering making a $1,000 charitable contribution. Jake currently is in the 39.6% tax bracket, but expects that his tax bracket will be 28% next year....

Q: Bala and Ann purchased as investments three identical parcels of land over

Bala and Ann purchased as investments three identical parcels of land over a several-year period. Two years ago they gave one parcel to their daughter, Kim, who is now age 16. They have an offer from...

Q: Deductible business or investment expenses must be related to a profit-

Deductible business or investment expenses must be related to a profit-motivated activity. a. What are the factors used in determining whether an activity is profit-motivated? b. Why are these facto...

Q: Peter Baumann, your client, wants to sell a printing press

Peter Baumann, your client, wants to sell a printing press to Chamberlain Corporation for $50,000. Pete has used the press in his business for two years and its adjusted basis is $90,000. The Coxmann...

Q: Otter Corporation sends people to the state capital to lobby the legislature

Otter Corporation sends people to the state capital to lobby the legislature to build a proposed highway that is planned to run through the area where its business is located. a. If Otter Corp. incur...

Q: The following information relates to Tom, a single taxpayer, age

The following information relates to Tom, a single taxpayer, age 18: Salary $1,800 Taxable interest income 1,600 Itemized deductions 600 a. Compute Tom’s taxable income assuming he is self-supporting...

Q: Explain what is meant by the phrase maintain a household.

Explain what is meant by the phrase maintain a household.

Q: Wes and Tina are a married couple and provide financial assistance to

Wes and Tina are a married couple and provide financial assistance to several persons during the current year. For the situations below, determine whether the individuals qualify as Wes and Tina’s dep...

Q: For the following taxpayers, indicate which tax form should be used

For the following taxpayers, indicate which tax form should be used, the applicable filing status, the number of personal and dependency exemptions available, and the number of children who qualify fo...