Questions from Federal Taxation

Q: Barbara incurred the following expenses during the year: $840 dues

Barbara incurred the following expenses during the year: $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition, $240 for multiple vitamins...

Q: In structuring the capitalization of a corporation, what are the advantages

In structuring the capitalization of a corporation, what are the advantages and disadvantages of utilizing debt rather than equity?

Q: Under what circumstances, if any, may a shareholder deduct a

Under what circumstances, if any, may a shareholder deduct a business bad debt on a loan made to the corporation?

Q: Keith’s sole proprietorship holds assets that, if sold, would yield

Keith’s sole proprietorship holds assets that, if sold, would yield a gain of $100,000. It also owns assets that would yield a loss of $30,000. Keith incorporates his business using only the gain asse...

Q: Sarah incorporates her small business but does not transfer the machinery and

Sarah incorporates her small business but does not transfer the machinery and equipment the business uses to the corporation. Subsequently, the machinery and equipment are leased to the corporation fo...

Q: Albert owns 100 acres of land on which he grows spruce Christmas

Albert owns 100 acres of land on which he grows spruce Christmas trees. His \adjusted basis for the land is $100,000. He receives condemnation proceeds \of $10,000 when the city’s new beltway takes 5...

Q: In terms of justification and effect, § 351 (transfers to

In terms of justification and effect, § 351 (transfers to a controlled corporation) and § 1031 (like-kind exchanges) are much alike. Explain.

Q: Under what circumstances will gain and/or loss be recognized on

Under what circumstances will gain and/or loss be recognized on a § 351 transfer?

Q: Can gain ever be recognized in a § 351 transfer if boot

Can gain ever be recognized in a § 351 transfer if boot is not received? Explain.

Q: Does the receipt of securities in exchange for the transfer of appreciated

Does the receipt of securities in exchange for the transfer of appreciated property to a controlled corporation cause recognition of gain? Explain.