Questions from Federal Taxation

Q: Cynthia and some associates want to form a corporation develop and operate

Cynthia and some associates want to form a corporation develop and operate an industrial park. Cynthia is to contribute the land, which has significantly appreciated in value. She would like to recogn...

Q: When a corporation distributes property as a dividend, what are the

When a corporation distributes property as a dividend, what are the tax effects on the corporation and its shareholders under the following assumptions? a. The property has declined in value. b. The p...

Q: Sy1via and Trang want to enter into business together and are unsure

Sy1via and Trang want to enter into business together and are unsure what type of entity to form (if any). They are concerned about the complexity of the paperwork required, the protection of personal...

Q: A calendar year corporation has an election under subchapter S. What

A calendar year corporation has an election under subchapter S. What will be the effect, if any, of the following events on its S status? a. The board of directors of the corporation revokes its S ele...

Q: Cynthia and Doug are equal shareho1ders in Penguin, a calendar year

Cynthia and Doug are equal shareho1ders in Penguin, a calendar year S corporation. At the end of the current tax year, Penguin has an operating loss. Although Cynthia and Doug have the same basis in t...

Q: Indicate whether each of the following will increase (+), decrease (一

Indicate whether each of the following will increase (+), decrease (一)， or have no effect (NE) on a partner's basis in a partnership interest: a. Operating loss of the partnership. b. Capital gains of...

Q: Blaine, Cassie, and Kirstin are equal partners in the Maize

Blaine, Cassie, and Kirstin are equal partners in the Maize Partnership. During the year, Maize has qualified dividends and a charitable contribution deduction. Explain the following results: a. Blain...

Q: What are guaranteed payments? When might such payments be used?

What are guaranteed payments? When might such payments be used?

Q: John purchased a primary residence on October 15, year 2,

John purchased a primary residence on October 15, year 2, for $240,000. On June 10, year 4, he married Karen, and she moved into the house. Karen was not added to the deed. On October 15, year 6, they...

Q: Explain why partnerships and S corporations are considered "pass-through

Explain why partnerships and S corporations are considered "pass-through" entities, and present an example of how the pass-through works.