Questions from General Taxation

Q: The owner of a corporation used corporate funds to pay for his

The owner of a corporation used corporate funds to pay for his home, all the home’s expenses, and numerous other personal expenses. This went on for a number of years until the corporation was audited...

Q: Shana is a 20 percent limited partner in the STU partnership.

Shana is a 20 percent limited partner in the STU partnership. Her basis in her partnership interest is $40,000 when she decides to abandon her partnership interest. The partnership’s balance sheet rep...

Q: Carol and her husband own 35 percent each of a land development

Carol and her husband own 35 percent each of a land development partnership. Carol owns a piece of land purchased six years ago for $60,000 that has been declining in value. The partnership wants to b...

Q: ABCD partnership, a calendar-year partnership, has four owners

ABCD partnership, a calendar-year partnership, has four owners: A owns a 20 percent interest; B a 25 percent interest; C a 40 percent interest; and D the remaining 15 percent interest. Some of the par...

Q: Craig is a 20 percent shareholder in an S corporation and works

Craig is a 20 percent shareholder in an S corporation and works an average of 20 hours per week in the business. His wife, Lynn, is a full-time employee of the corporation. The corporation provides fu...

Q: The Gemini Corporation, an S corporation, wants to expand its

The Gemini Corporation, an S corporation, wants to expand its lines of business. To do so quickly, it acquires 85 percent of the stock of Trojan Corporation, a regular C corporation.

Q: Martha provides the sole support for her son, David, who

Martha provides the sole support for her son, David, who lives at home while he attends school. Martha gives David a $40,000 automobile for his 18th birthday.

Q: How do liabilities assumed by a corporation affect a shareholder transferring property

How do liabilities assumed by a corporation affect a shareholder transferring property to it in a qualifying Section 351 transfer?

Q: Ten years ago, Carolyn created a revocable trust using marketable securities

Ten years ago, Carolyn created a revocable trust using marketable securities valued at $500,000. The trust department at the local bank is the trustee. Under the terms of the trust, Carolyn retained a...

Q: In year 1, Loren and Tim enter into a property settlement

In year 1, Loren and Tim enter into a property settlement agreement under which Tim agrees to pay $600,000 to Loren in return for the release of her marital rights. The payment is to be made in three...