Questions from General Taxation

Q: The Blanton Corporation had a deficit in its current earnings and profits

The Blanton Corporation had a deficit in its current earnings and profits of $36,500 for the current year. It has $75,000 in accumulated earnings and profits. It made two distributions to its sharehol...

Q: Bob and Jane, brother and sister, are equal partners in

Bob and Jane, brother and sister, are equal partners in a family partnership that owns 400 shares of the Sibling Corporation. Their grandfather owns the remaining 100 shares of Sibling Corporation. Ho...

Q: Why do you think Congress requires the recognition of gain on the

Why do you think Congress requires the recognition of gain on the distribution of appreciated property but does not allow the recognition of loss on depreciated property in a nonliquidating distributi...

Q: Explain how a parent–subsidiary controlled group differs from an affiliated

Explain how a parent–subsidiary controlled group differs from an affiliated controlled group. Develop examples of each to illustrate the differences.

Q: Why do you think services are excluded from the definition of property

Why do you think services are excluded from the definition of property when a partner receives a partnership interest in exchange for property?

Q: Why do you think an S corporation is limited to having common

Why do you think an S corporation is limited to having common stock with no differences other than voting rights?

Q: In 2010, Congress chose to repeal the estate tax for that

In 2010, Congress chose to repeal the estate tax for that year, but retained the gift tax. Why do you think they did that?

Q: What types of assets are Section 1231 assets? What types of

What types of assets are Section 1231 assets? What types of assets are capital assets? What types of assets are ordinary income assets? Give several examples of each type of asset.

Q: Beginning in 2012, Congress increased the top estate and gift tax

Beginning in 2012, Congress increased the top estate and gift tax rate to 40 percent and permanently increased the unified credit with inflation indexing. What (if any) changes do you think Congress m...

Q: Mark’s father, Michael, loaned Mark $300,000 interest

Mark’s father, Michael, loaned Mark $300,000 interest free for five years to invest in securities that yield a 10 percent annual return. At the end of the five years, Mark sells the securities to repa...