Questions from Federal Taxation

Q: Fish, Inc., an exempt organization, reports unrelated business income

Fish, Inc., an exempt organization, reports unrelated business income of $500,000 (before any charitable contribution deduction). During the year, Fish makes charitable contributions of $54,000, of wh...

Q: Sam and Drew are equal partners in SD LLC formed on June

Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2009. Sam’s uncle purchased the land in 1984 for $30,000. The l...

Q: Clario, S.A., a Peruvian corporation, manufactures furniture

Clario, S.A., a Peruvian corporation, manufactures furniture in Peru. It sells the furniture to independent distributors in the United States. Because title to the furniture passes to the purchasers i...

Q: Continue with the facts presented in Problem 32. Facts from

Continue with the facts presented in Problem 32. Facts from Problem 32. Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his...

Q: Continue with the facts presented in Problem 32. At the end

Continue with the facts presented in Problem 32. At the end of the first year, the LLC distributes $100,000 of cash to Sam. No distribution is made to Drew. a. Under general tax rules, how would the p...

Q: The JM Partnership was formed to acquire land and subdivide it as

The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2017, Jessica contributed land valued at $600,000 to the partnership, in exchange for a 50% inte...

Q: Tom and Missy form TM Partnership, Ltd. (a limited

Tom and Missy form TM Partnership, Ltd. (a limited partnership), to own and operate certain real estate. Tom contributed land, and Missy contributed cash to be used for setting up the entity and creat...

Q: On July 1 of the current year, the R & R

On July 1 of the current year, the R & R Partnership (a limited partnership using a calendar tax year) was formed to operate a bed-and-breakfast. The partnership paid $3,000 in legal fees for drafting...

Q: Browne and Red, both C corporations, formed the BR Partnership

Browne and Red, both C corporations, formed the BR Partnership on January 1, 2015. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR’s gross receipts were $4.6...

Q: Cerulean, Inc., Coral, Inc., and Crimson, Inc

Cerulean, Inc., Coral, Inc., and Crimson, Inc. form the Three Cs Partnership on January 1 of the current year. Cerulean is a 50% partner, and Crimson and Coral are 25% partners. For reporting purposes...