Questions from Federal Taxation

Q: Irene contributes land to Micro Development Partnership for a 30% interest

Irene contributes land to Micro Development Partnership for a 30% interest. The land's basis is $20,000, and it has a fair market value of $80,000. Micro reports a net operating loss of $100,000 for...

Q: Harry sells the automobile he has used in his job as a

Harry sells the automobile he has used in his job as a salesman for $2,000. It cost $15,000 four years earlier. Harry used the automobile 70% of the time in his job and 30% of the time for personal p...

Q: Powell owns a 20% interest in Cooke Partnership. At the

Powell owns a 20% interest in Cooke Partnership. At the beginning of 2016, Powell's basis is $22,000. Cooke reports a $90,000 operating loss in 2016, and Powell withdraws $10,000 from the partnershi...

Q: Ramrod, Inc., sells a warehouse for $350,000

Ramrod, Inc., sells a warehouse for $350,000. It purchased the warehouse 10 years ago for $250,000 and had taken $75,000 in depreciation on the building to the date of sale. Identify the tax issue(s)...

Q: Myrtle Coast Corporation has a $35,000 operating loss during

Myrtle Coast Corporation has a $35,000 operating loss during the current year. Not included in the loss is a $40,000 dividend it received from a corporation in which it owns a 15% interest. Identify...

Q: LMC, Inc., is equally owned by Larry, Maurice,

LMC, Inc., is equally owned by Larry, Maurice, and Charles. The owners are sports agents. LMC's income consists solely of fees from the owners' clients. During the current year, LMC's net income fro...

Q: Assume the same facts as in problem 63, except that LMC

Assume the same facts as in problem 63, except that LMC, Inc., is an electing S corporation. Data from Problem 63: LMC, Inc., is equally owned by Larry, Maurice, and Charles. The owners are sports ag...

Q: Return to the facts of problem 21. How would your answers

Return to the facts of problem 21. How would your answers change if Binh is not a material participant in the Lamonica Partnership? Assume that Binh has no other passive income in either year. Wri...

Q: AnnaBell and Eva own and manage Purity Forms Development. AnnaBell’s and

AnnaBell and Eva own and manage Purity Forms Development. AnnaBell’s and Eva’s bases in Purity at the beginning of the year are $18,000 and $24,000, respectively. During the current year, Purity suf...

Q: Assume the same facts as in problem 23, except that the

Assume the same facts as in problem 23, except that the $45,000 debt is a loan that AnnaBell made to Purity. How would your answers to parts a and c change? Assume that the beginning basis numbers d...