Questions from Federal Taxation

Q: Sean Moon is president, secretary, treasurer, sole director,

Sean Moon is president, secretary, treasurer, sole director, and sole shareholder of Streetz, an S corporation real estate company. He manages all aspects of the company’s operations...

Q: Rejoice, Inc., a private foundation, has existed for 10

Rejoice, Inc., a private foundation, has existed for 10 years. Rejoice held undistributed income of $160,000 at the end of its 2015 tax year. Of this amount, $90,000 was distributed in 2016, and $70,0...

Q: Helpers, Inc., a qualifying § 501(c)(3

Helpers, Inc., a qualifying § 501(c)(3) organization, incurs lobbying expenditures of $250,000 for the taxable year and grass roots expenditures of $0. Exempt purpose expenditures for the taxable year...

Q: Davis, an officer for a § 501(c)(3

Davis, an officer for a § 501(c)(3) organization, receives benefits that are inappropriate in the context of a charitable entity. The excess benefits are determined to be $35,000. Davis does not pay b...

Q: Really Welcome, Inc., a tax-exempt organization, receives

Really Welcome, Inc., a tax-exempt organization, receives 30% of its support from disqualified persons. Another disqualified person has agreed to match this support if Really Welcome will appoint him...

Q: An exempt organization is considering conducting bingo games on Thursday nights as

An exempt organization is considering conducting bingo games on Thursday nights as a way of generating additional revenue to support its exempt purpose. Before doing so, however, the president of the...

Q: An exempt municipal hospital operates a pharmacy that is staffed by a

An exempt municipal hospital operates a pharmacy that is staffed by a pharmacist 24 hours per day. The pharmacy serves only hospital patients. Is the pharmacy likely an unrelated trade or business? Ex...

Q: Brandy, a U.S. corporation, operates a manufacturing

Brandy, a U.S. corporation, operates a manufacturing branch in Chad, which does not have an income tax treaty with the United States. Brandy’s worldwide Federal taxable income is $30...

Q: Weather, Inc., a domestic corporation, operates in both Fredonia

Weather, Inc., a domestic corporation, operates in both Fredonia and the United States. This year, the business generated taxable income of $600,000 from foreign sources and $900,000 from U.S. sources...

Q: Dunne, Inc., a U.S. corporation, earned

Dunne, Inc., a U.S. corporation, earned $500,000 in total taxable income, including $50,000 in foreign-source taxable income from its branch manufacturing operations in Brazil and $20,000 in foreign-s...