Questions from Federal Taxation

Q: What are the tax consequences of receiving an ownership interest in an

What are the tax consequences of receiving an ownership interest in an entity in exchange for services rendered to the entity?

Q: What are the tax differences between a corporation and a personal service

What are the tax differences between a corporation and a personal service corporation?

Q: Which entity form(s) recognize owners as employees of the

Which entity form(s) recognize owners as employees of the business?

Q: Assume that you are a CPA and a tax specialist. Your

Assume that you are a CPA and a tax specialist. Your clients include Ale and Grains, Inc., an S corporation, and Gustav and Heidi Lager, a married couple who are shareholders and the operators of Ale...

Q: What is unrecaptured Section 1250 gain, and how is the gain

What is unrecaptured Section 1250 gain, and how is the gain taxed?

Q: Miriam is a self-employed computer consultant. Her business nets

Miriam is a self-employed computer consultant. Her business nets $120,000 annually, and she takes $85,000 of the earnings in salary. Miriam is considering incorporating her computer consulting busin...

Q: Robbie is the vice president of Mailer Corporation. He owns 40

Robbie is the vice president of Mailer Corporation. He owns 40% of Mailer, which is organized as an S corporation. Robbie's salary is $75,000, and he receives group-term life insurance and health an...

Q: Rikki and Rhonda are equal owners of LilMark Corporation. To expand

Rikki and Rhonda are equal owners of LilMark Corporation. To expand their operations, Marsha will contribute a building worth $80,000 for which she will receive a one-third ownership interest in the...

Q: Ben and Pete form a corporation to run a real estate investment

Ben and Pete form a corporation to run a real estate investment management company. Ben contributes cash of $40,000 to the corporation in exchange for 50% of its stock. Pete obtains his 50% ownershi...

Q: Ariel and Mia agree to combine their business assets to form the

Ariel and Mia agree to combine their business assets to form the A&M Corporation. Ariel’s business assets are worth $135,000 and have a basis of $80,000. Mia’s business assets are worth $200,000, ha...