Questions from Federal Taxation

Q: Phoebe and Parker are equal members in Phoenix Investors LLC. They

Phoebe and Parker are equal members in Phoenix Investors LLC. They are real estate investors who formed the LLC several years ago with equal cash contributions. Phoenix then purchased a parcel of land...

Q: For purposes of the related-party loss limitation within the context

For purposes of the related-party loss limitation within the context of a complete liquidation of a corporation, what is the definition of disqualified property?

Q: Regarding the apportionment formula used to compute state taxable income, does

Regarding the apportionment formula used to compute state taxable income, does each of the following independent characterizations describe a taxpayer that likely is based in state or out of state? Ex...

Q: Chock, a U.S. corporation, purchases inventory for

Chock, a U.S. corporation, purchases inventory for resale from distributors within the United States and resells this inventory at a $1 million profit to customers outside the United States. Title to...

Q: Elmwood, Inc., a domestic corporation, owns 15% of

Elmwood, Inc., a domestic corporation, owns 15% of Correy, Ltd., a Hong Kong corporation. The remaining 85% of Correy is owned by Fortune Enterprises, a Canadian corporation. At the end of the current...

Q: The board of directors of White Pearl, Inc., a private

The board of directors of White Pearl, Inc., a private foundation, consists of Charlyne, Beth, and Carlos. They vote unanimously to provide a $500,000 grant to Carlos. The grant is to be used for trav...

Q: Willa, a U.S. corporation, owns the rights

Willa, a U.S. corporation, owns the rights to a patent related to a medical device. Willa licenses the rights to use the patent to IrishCo, which uses the patent in its manufacturing facility located...

Q: Jerry Jeff Keen, the CFO of Boots Unlimited, a Texas

Jerry Jeff Keen, the CFO of Boots Unlimited, a Texas corporation, has come to you regarding a potential restructuring of business operations. Boots has long manufactured its western boots in plants in...

Q: Polly Ling is a successful professional golfer. She is a resident

Polly Ling is a successful professional golfer. She is a resident of a country that does not have a tax treaty with the United States. Ling plays matches around the world, about one-half of which are...

Q: For the built-in loss limitation to apply, the property

For the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose principal purpose was to recognize a loss on the property by the liquidating...