Questions from Federal Taxation

Q: What penalties apply to the underpayment of estimated taxes? The late

What penalties apply to the underpayment of estimated taxes? The late payment of the remaining tax liability?

Q: Describe the situations in which a corporation must file a tax return

Describe the situations in which a corporation must file a tax return.

Q: When is a corporate tax return due for a calendar-year

When is a corporate tax return due for a calendar-year taxpayer? What extension(s) of time in which to file the return are available?

Q: Williams Corporation sold a truck with an adjusted basis of $100

Williams Corporation sold a truck with an adjusted basis of $100,000 to Barbara for $80,000. Barbara owns 25% of the Williams stock. What tax issues should Williams and Barbara consider with respect t...

Q: You are the CPA who prepares the tax returns for Don,

You are the CPA who prepares the tax returns for Don, his wife, Mary, and their two corporations. Don owns 100% of Pencil Corporation’s stock. Pencil’s current year taxable income is $100,000. Mary ow...

Q: Rugby Corporation has a $50,000 NOL in the current

Rugby Corporation has a $50,000 NOL in the current year. Rugby’s taxable income in each of the previous two years was $25,000. Rugby expects its taxable income for next year to exceed $400,000. What i...

Q: Last year, Patty contributed land with a $4,000

Last year, Patty contributed land with a $4,000 basis and a $10,000 FMV in exchange for a 40% profits, loss, and capital interest in the PD Partnership. Dave contributed land with an $8,000 basis and...

Q: Scott and Dave each invested $100,000 cash when they

Scott and Dave each invested $100,000 cash when they formed the SD Partnership and became equal partners. They agreed that the partnership would pay each partner a 5% guaranteed payment on his $100,00...