Questions from Federal Taxation

Q: Tammy and Barry formed Pheasant Corporation several years ago in a transaction

Tammy and Barry formed Pheasant Corporation several years ago in a transaction that qualified under § 351. Both shareholders serve as officers and on the board of directors of Pheasant. In the current...

Q: Explain the requirements for a redemption to pay death taxes. What

Explain the requirements for a redemption to pay death taxes. What are the tax consequences of a redemption to pay death taxes for the shareholder and the corporation?

Q: Angie and her daughter, Ann, who are the only shareholders

Angie and her daughter, Ann, who are the only shareholders of Bluebird Corporation, each paid $100,000 four years ago for their shares in Bluebird. Angie also owns 20% of the stock in Redbird Corporat...

Q: In determining Blue Corporation’s current E & P for 2017, how

In determining Blue Corporation’s current E & P for 2017, how should taxable income be adjusted as a result of the following transactions? a. A capital loss carryover from 2016, fully used in 2017. b....

Q: Joanne is in the 28% tax bracket and owns depreciable business

Joanne is in the 28% tax bracket and owns depreciable business equipment that she purchased several years ago for $135,000. She has taken $100,000 of depreciation on the equipment, and it is worth $55...

Q: Jimmy Limited added elevators, access ramps, and several technological improvements

Jimmy Limited added elevators, access ramps, and several technological improvements to the 1923 building in which it operates a consulting business. Jimmy is an LLC with five full-time employees and a...

Q: Describe the effect of a distribution in a year when the distributing

Describe the effect of a distribution in a year when the distributing corporation has any of the following: a. A deficit in accumulated E & P and a positive amount in current E & P. b. A positive amou...

Q: Sheila sells land to Elane, her sister, for the fair

Sheila sells land to Elane, her sister, for the fair market value of $40,000. Six months later when the land is worth $45,000, Elane gives it to Jacob, her son. (No gift tax resulted.) Shortly thereaf...

Q: A calendar year corporation has substantial accumulated E & P, but

A calendar year corporation has substantial accumulated E & P, but it expects to incur a deficit in current E & P for the year due to significant losses in the last half of the year. A cash distributi...

Q: If a redemption is treated as a dividend (“nonqualified stock redemption

If a redemption is treated as a dividend (“nonqualified stock redemption”), what happens to the basis of the stock redeemed?