Q: Tim is a real estate broker who specializes in commercial real estate
Tim is a real estate broker who specializes in commercial real estate. Although he usually buys and sells on behalf of others, he also maintains a portfolio of property of his own. He holds this prope...
See AnswerQ: Sarah is the sole owner of Bluegrass Corporation. The basis and
Sarah is the sole owner of Bluegrass Corporation. The basis and value of her stock investment in Bluegrass are approximately $100,000. In addition, she manages Bluegrass’s operations on a full-time ba...
See AnswerQ: Lynn Jones, Shawn, Walt, and Donna are trying to
Lynn Jones, Shawn, Walt, and Donna are trying to decide whether they should organize a corporation and transfer their shares of stock in several corporations to this new corporation. All of their shar...
See AnswerQ: Ash, Inc., a closely held personal service corporation, has
Ash, Inc., a closely held personal service corporation, has $100,000 of passive activity losses. In addition, Ash has $80,000 of active business income and $20,000 of portfolio income. How much of the...
See AnswerQ: Ahmed Zinna (16 Southside Drive, Charlotte, NC 28204),
Ahmed Zinna (16 Southside Drive, Charlotte, NC 28204), one of your clients, owns two retail establishments in downtown Charlotte and has come to you seeking advice concerning the tax consequences of c...
See AnswerQ: Global Corporation distributed property with an $850,000 fair market
Global Corporation distributed property with an $850,000 fair market value and a $415,000 adjusted basis to one of its shareholders. The property was subject to a $230,000 mortgage, which the sharehol...
See AnswerQ: In the current year, Ed invests $30,000 in
In the current year, Ed invests $30,000 in an oil partnership. He has taxable income for the current year of $2,000 from the oil partnership and withdraws $10,000. What is Ed’s at-risk amount at the e...
See AnswerQ: Quinlan has ample E & P to cover any distributions made during
Quinlan has ample E & P to cover any distributions made during the year. One distribution made to a shareholder consists of a property with an adjusted basis of $150,000 and a fair market value of $90...
See AnswerQ: Deerwood Corporation lends its principal shareholder, Lafayette, $500,
Deerwood Corporation lends its principal shareholder, Lafayette, $500,000 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are...
See AnswerQ: In late 2016, Randy and Rachel Erwin paid $7,
In late 2016, Randy and Rachel Erwin paid $7,000 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. The adoption becomes final in 2017, and th...
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