Questions from Federal Taxation

Q: Shelly has $200,000 of QBI from her local jewelry

Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W-2 wages and has $20,000 of qualified property. Shelly's spouse earned $74,000...

Q: Peter Samuels owns and manages his single member LLC that provides a

Peter Samuels owns and manages his single member LLC that provides a wide variety of financial services to his clients. He is married and will file a joint tax return with his spouse, Amy. His LLC rep...

Q: White Corporation lends $425,000 to Blue Corporation with no

White Corporation lends $425,000 to Blue Corporation with no provision for interest. White Corporation and Blue Corporation are owned by the same shareholders. How might the IRS restructure this trans...

Q: Donald owns a wide variety of commercial rental properties held in a

Donald owns a wide variety of commercial rental properties held in a single member LLC. Donald's LLC reports rental income of S 1,500,000. The LLC pays no W-2 wages; rather, it pays a management fee t...

Q: Scott and Laura are married and will file a joint tax return

Scott and Laura are married and will file a joint tax return. Scott has a sole proprietorship (not a "specified services" business) that reports net income of $300,000. The proprietorship pays W-2 Wag...

Q: Sparrow Corporation (a calendar year, accrual basis taxpayer) had

Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2018, it5 second year of operation. Sparrow uses the LIFO inventory method, and its LIFO recapture amo...

Q: Ben and Molly are married and will file jointly. Ben earns

Ben and Molly are married and will file jointly. Ben earns $300,000 from his single member LLC (a Jaw firm). He reports his business as a sole proprietorship. Wages paid by the Jaw firm amount to $40,...

Q: Yellow Corporation, a calendar year taxpayer, made estimated tax payments

Yellow Corporation, a calendar year taxpayer, made estimated tax payments of $40,000 for 2018 ($10,000 per quarter). Yellow filed its Federal income tax return for 2018 reflecting a tax liability of $...

Q: Tern Corporation, a calendar year C corporation, is solely owned

Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern's only business since its incorporation in 2015 has been land surveying services. In Tern's state of incorpora...

Q: Dan Knight and Patricia Chen, ~vho are good friends,

Dan Knight and Patricia Chen, ~vho are good friends, form Crane Corporation. Dan transfers land (worth $200,000, basis of $60,000) for 50% of the stock in Crane. Patricia transfers machinery (worth $1...