Questions from General Taxation

Q: An employee uses her employer’s auto 75 percent for business and 25

An employee uses her employer’s auto 75 percent for business and 25 percent for personal use. The personal use is taxed to her as income. What percentage of the auto can the employer consider business...

Q: Partner X, a one-third partner in XYZ Partnership,

Partner X, a one-third partner in XYZ Partnership, needs a distribution from the partnership for some unexpected bills. The partnership, however, does not have any extra cash to distribute. It will di...

Q: Maria, a 25 percent partner in MARS Partnership, needs a

Maria, a 25 percent partner in MARS Partnership, needs a distribution from the partnership for some unexpected bills. The partnership, however, does not have any extra cash to distribute. It will dist...

Q: Bob is a 50 percent owner of Barco Enterprises. During 2017

Bob is a 50 percent owner of Barco Enterprises. During 2017, Barco earned $80,000 in net income after subtracting Bob’s $50,000 salary. Bob also withdrew $20,000 from Barco during the year. Bob would...

Q: Refer to the information in problem 25, except that George and

Refer to the information in problem 25, except that George and Georgenne are equal shareholders in an S corporation. a. What is the net income, excluding separately stated items, that each shareholde...

Q: Charles owns a 25 percent interest in Cal Corporation, an S

Charles owns a 25 percent interest in Cal Corporation, an S corporation. The corporation has run into some difficulties recently and Charles loaned it $10,000. At the beginning of the year, Charles’s...

Q: Is there any tax advantage to a 100 percent shareholder-employee

Is there any tax advantage to a 100 percent shareholder-employee of an S corporation compared to a shareholder-employee of a C corporation under the following circumstances: shareholder-employee salar...

Q: At the beginning of year 1, Lisa and Marie were equal

At the beginning of year 1, Lisa and Marie were equal shareholders in LM Corporation, an S corporation. On April 30, year 1, Lisa sold half of her interest to Shelley. On August 8, year 1, Marie sold...

Q: The Jane Corporation, an S corporation, makes several property distributions

The Jane Corporation, an S corporation, makes several property distributions to its two equal shareholders, A and B, during the year. A received $5,000 cash plus land with a basis of $8,000 and fair m...

Q: PA Corporation, an S corporation, has two equal shareholders,

PA Corporation, an S corporation, has two equal shareholders, P and A. Prior to the end of the current year, PA decides to liquidate and sell its three remaining assets distributing the cash received...