Questions from General Taxation

Q: The Westlawn Corporation is located in a flood plain. Twelve years

The Westlawn Corporation is located in a flood plain. Twelve years ago, its offices were flooded when the nearby river overflowed. Six years ago, the area received 12 inches of rain in a sixhour perio...

Q: Karen purchased her personal auto two years ago from a local new

Karen purchased her personal auto two years ago from a local new car dealer. Since purchasing the car, she took it into the dealer for major warranty repairs five different times and minor repairs a t...

Q: The Timmins Corporation has three acres of land on which its warehouse

The Timmins Corporation has three acres of land on which its warehouse and offices are located. The state condemned two acres of the land for an extension of a highway frontage road. The strip that wa...

Q: Claiborne, Inc. has received an offer to purchase its manufacturing

Claiborne, Inc. has received an offer to purchase its manufacturing facilities for $7,500,000. If sold, it would have a gain of $5,000,000 on the property. Claiborne has found an ideal location for a...

Q: Barry owned a number of rental properties. One of the rental

Barry owned a number of rental properties. One of the rental properties was located next to his personal residence. Both properties were condemned by the state. Barry found a perfect residence to repl...

Q: Carlson Manufacturing’s plant was condemned by the federal government to allow for

Carlson Manufacturing’s plant was condemned by the federal government to allow for expansion of one of its secured locations for government employees. The government paid the company $6,800,000 for th...

Q: What is the critical requirement of a corporate formation to ensure tax

What is the critical requirement of a corporate formation to ensure tax-deferred property transfers to all participants?

Q: Barry is very dedicated to the arts and has made a career

Barry is very dedicated to the arts and has made a career of purchasing copyrights to various art forms. Once purchased, he publicizes these works to capitalize on the copyrights and has been very suc...

Q: Seven years ago, the Bonnet Corporation redeemed all of Joe Bonnet’s

Seven years ago, the Bonnet Corporation redeemed all of Joe Bonnet’s stock as a complete termination of interest. At the time, Joe signed a waiver of family attribution rules because his three sons re...

Q: Sweeney was the chairman of Sweeney, Inc., a large hardware

Sweeney was the chairman of Sweeney, Inc., a large hardware and lumber store. When Sweeney became ill, his son took over the business but sold the property and all the inventory of lumber valued at $2...