Questions from Federal Taxation

Q: What is the purpose of the dividends-received deduction?

What is the purpose of the dividends-received deduction?

Q: What are the similarities and differences in the income tax treatment of

What are the similarities and differences in the income tax treatment of a partnership and an S corporation?

Q: Compare the tax treatment of a nonliquidating distribution of cash or property

Compare the tax treatment of a nonliquidating distribution of cash or property and a liquidating distribution of cash or property for each of the following entities a. Sole proprietorship b. Partnersh...

Q: Explain the advantages to taxpayers of hiring their children to work in

Explain the advantages to taxpayers of hiring their children to work in their businesses.

Q: Why do sole proprietors not include all the items of income and

Why do sole proprietors not include all the items of income and deductions related to their business in the calculation of the business’s operating income?

Q: Why must a partnership separately state certain items in reporting its income

Why must a partnership separately state certain items in reporting its income to the partners?

Q: Partners can generally deduct losses from the partnership. What are the

Partners can generally deduct losses from the partnership. What are the three limitations on the deduction of partnership losses?

Q: Explain how a partner’s basis in a partnership can differ from the

Explain how a partner’s basis in a partnership can differ from the partner’s at-risk amount.

Q: Waldo Corporation has recently retained your accounting firm to prepare its income

Waldo Corporation has recently retained your accounting firm to prepare its income tax return. Art, the partner in charge of the engagement, has assigned you the job of reviewing last year's return an...

Q: Kummell Corporation reports a $200,000 taxable income in the

Kummell Corporation reports a $200,000 taxable income in the current year. Included in the taxable income calculation are $20,000 in dividends received from less-than-20%-owned corporations, and $30,...