Questions from General Taxation

Q: A number of specific transactions do not necessarily follow the general tax

A number of specific transactions do not necessarily follow the general tax provisions applicable to property transactions. Following are a group of transactions that are subject to specific tax provi...

Q: A subsidiary of Corporation A, an electrical utility located in Springfield

A subsidiary of Corporation A, an electrical utility located in Springfield, and a subsidiary of Corporation B, a diversified manufacturer also located in Springfield, formed a joint venture under the...

Q: Sheralyn was in the wholesale distribution business for pecans and peanuts grown

Sheralyn was in the wholesale distribution business for pecans and peanuts grown in Georgia. She and her brother owned and operated several warehouses. Seven years ago, they purchased property for ano...

Q: Sharon has salary income of $68,000, a net

Sharon has salary income of $68,000, a net short-term capital gain of $15,000, and a net long-term capital loss of $24,000. What is Sharon’s adjusted gross income if she has no other income items?

Q: Locate and read Section 385 of the Internal Revenue Code and develop

Locate and read Section 385 of the Internal Revenue Code and develop a comprehensive list of factors that indicate legitimate debt. What is the status of the regulations that are to expand on this Cod...

Q: Several years ago, Congress repealed the General Utilities Doctrine. Locate

Several years ago, Congress repealed the General Utilities Doctrine. Locate and read General Utilities & Operating Co. v. Helvering, 296 US 200 (1935). Summarize this case. What was the General Utilit...

Q: Locate and read Internal Revenue Code Sections 267, 318, and

Locate and read Internal Revenue Code Sections 267, 318, and 544. Compare the definition of family in each of these sections.

Q: June owned all the stock of Corporation A. Over the years

June owned all the stock of Corporation A. Over the years, the corporation had been very successful but had never paid any dividends, although it had substantial earnings and profits. June wanted to e...

Q: Roberta Wynn has been a partner in the Cato Partnership for a

Roberta Wynn has been a partner in the Cato Partnership for a number of years. With the permission of the other partners, she sells her partnership interest to a third party. At the time of sale, her...

Q: The partners of JPG Partnership want to change the form of entity

The partners of JPG Partnership want to change the form of entity from a partnership to a corporation. The corporation can be formed in several ways: The partnership can distribute the assets to the p...