Questions from Federal Taxation

Q: Susan, a single taxpayer, owns and operates a bakery (

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2018, the business pays $100,000 in W-2 wages, has $150,000 of...

Q: Assume the same facts as in Problem 35, except that the

Assume the same facts as in Problem 35, except that the business is a "specified services" business (e.g., a consulting firm) owned equally by Elliot and Conrad (an unrelated individual) in a two-memb...

Q: Assume the same facts as in Question 6, except that property

Assume the same facts as in Question 6, except that property is distributed. What factors must be considered when determining how the distribution is treated for tax purposes by Orange Corporation?

Q: Assume the same facts as in Problem 31, except that Susan's

Assume the same facts as in Problem 31, except that Susan's business reports net income of $150,000 (all of which is qualified business income). What is Susan's QBI deduction? Problem 31: Susan, a si...

Q: Benny sells property basis of $70,000) to Jet

Benny sells property basis of $70,000) to Jet Corporation for $100,000. Based on the following conditions, how could the IRS challenge this transaction? a. Benny is the sole shareholder of Jet Corpora...

Q: Interpret each of the following citations. a. 54 T

Interpret each of the following citations. a. 54 T.C. 1514 (1970) b. 408 F.2d 1117 (CA-2, 1969) . c. 69-1 USTC ¶ 9319 (CA-2, 1969). d. 23 AFTR 2d 69-1090 (CA-2, 1969). e. 293 F.Supp. 1129 (D.Ct. Miss....

Q: In the current year, Nighthawk Corporation, a calendar year C

In the current year, Nighthawk Corporation, a calendar year C corporation, has $3.7 million of adjusted taxable income, S 125,000 of business interest income, zero floor plan financing interest, and $...

Q: Several years ago, Minjun, who is single, acquired§

Several years ago, Minjun, who is single, acquired§ 1244 stock in Blue Corporation at a cost of $60,000. He sells the Blue stock for $5,000 in the current year. Determine the amount and nature of Minj...

Q: Compute the charitable contribution deduction (ignoring the percentage limitation) for

Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. a. Amber Corporation donated inventory of clothing (basis of $24,000, fair...

Q: Crane and Loon Corporations, two unrelated calendar year C corporations,

Crane and Loon Corporations, two unrelated calendar year C corporations, have the following transactions for the current year. a. Compute the dividends received deduction for Crane Corporation. b. C...