Questions from Federal Taxation

Q: What purpose is served by the Check -the-box Regulations

What purpose is served by the Check -the-box Regulations?

Q: What are the primary tax and nontax advantages of limited liability companies

What are the primary tax and nontax advantages of limited liability companies?

Q: The Owen brothers have obtained financing to start a new venture.

The Owen brothers have obtained financing to start a new venture. The business will be high-risk as to potential liability and is expected to incur losses before becoming profitable. What type of enti...

Q: Contrast income taxation of individua1s and C corporations as to each of

Contrast income taxation of individua1s and C corporations as to each of the following: a. Alternative minimum tax. b. Dividend income. c. Use of the cash method of accounting. d. Accounting period us...

Q: The taxpayer has excess capital losses (both short -term and

The taxpayer has excess capital losses (both short -term and long-term) for the current year. Discuss the income tax ramifications of the losses if the taxpayer is: a. An individual. b. A C corporatio...

Q: In late December 2018, Gray Corporation (a calendar year C

In late December 2018, Gray Corporation (a calendar year C corporation) pledges a $ 50,000 donation to a local relief agency formed to fight AIDS in Africa. Although Gray's board of directors authoriz...

Q: Magda maintains the household that includes a son (age 30)

Magda maintains the household that includes a son (age 30) and a cousin (age 28). She can claim the cousin as a dependent but not her son. Explain.

Q: On December 29, 2018, an employee received a $5

On December 29, 2018, an employee received a $5,000 check from her emp1oyer's client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30, 201...

Q: Monique owns a building that she leases to an individual who operates

Monique owns a building that she leases to an individual who operates a grocery store. Rent income is $10,000, and rental expenses are $6,000. On what Form 1040 schedule or schedules are the income an...

Q: Marsha exchanged land in Florida with an FMV of $52,

Marsha exchanged land in Florida with an FMV of $52,700 and an adjusted basis of $60,000 for land in Iowa with an FMV of $57,700. Marsha also paid $5,000 cash in the transaction. What is Marsha's basi...