Questions from Federal Taxation

Q: Tony and Susan are starting a retail business selling formal wear for

Tony and Susan are starting a retail business selling formal wear for men and women. They estimate profits and losses for the next five years to be: ($20,000), ($10,000), ($5,000), $10,000, and $50,...

Q: Tory, Becky, Hal, and Jere form TBHJ Partnership as

Tory, Becky, Hal, and Jere form TBHJ Partnership as equal owners. TBHJ Partnership rents heavy tools and equipment. Becky and Hal are married to each other while Tory and Jere are brothers but are n...

Q: Bert, founded Sambert Corporation a little over a year ago.

Bert, founded Sambert Corporation a little over a year ago. He believes that his company, which sells specialized computer toys, will be very profitable over the next several years, as evidenced by i...

Q: Astrid, who is single, is a sales representative for several

Astrid, who is single, is a sales representative for several sporting goods manufacturers. She operates her enterprise as a sole proprietorship. Astrid has 1 employee, Melvin, who serves as office m...

Q: Under what circumstances can a partner transact with a partnership at arm’s

Under what circumstances can a partner transact with a partnership at arm’s length?

Q: Explain the general rationale for adjusting the basis of partners and S

Explain the general rationale for adjusting the basis of partners and S corporation shareholders.

Q: Explain the general difference in the treatment of each of the following

Explain the general difference in the treatment of each of the following items for a corporation: a. Capital gains and losses b. Passive losses c. Charitable contributions d. Dividends received

Q: Are passive losses treated the same for all types of entities?

Are passive losses treated the same for all types of entities?

Q: How does the recapture of depreciation on a Section 1250 property for

How does the recapture of depreciation on a Section 1250 property for a corporation differ from that of other entities?

Q: You are a CPA who works for a local accounting firm.

You are a CPA who works for a local accounting firm. While having lunch at Willie's Diner last Thursday, you overheard Beth Murray describe how Bart (her spouse) was able to get a $2,000 business los...