Questions from General Taxation

Q: What is the difference between a prospective S election and a retroactive

What is the difference between a prospective S election and a retroactive S election?

Q: What types of taxes may an S corporation have to pay and

What types of taxes may an S corporation have to pay and under what circumstances?

Q: The Gem Company, a sole proprietorship, provides health insurance for

The Gem Company, a sole proprietorship, provides health insurance for its owner and two employees. The cost per person is $200 per month. Explain how the Gem Company and its sole proprietor will treat...

Q: Explain how an increase or decrease in partnership liabilities can affect the

Explain how an increase or decrease in partnership liabilities can affect the basis of a general partner and a limited partner.

Q: Explain the difference between the effects of liabilities of an S corporation

Explain the difference between the effects of liabilities of an S corporation on a shareholder’s stock basis and the effect of liabilities of a partnership on a partner’s partnership interest basis.

Q: Although partners can generally deduct their share of losses from a partnership

Although partners can generally deduct their share of losses from a partnership, what three things can limit their ability to deduct these losses on their current year’s tax return?

Q: Delta Corporation purchased three assets during the current year: a new

Delta Corporation purchased three assets during the current year: a new automobile costing $60,000, used office furniture costing $600,000, and a warehouse costing $850,000 (of which $100,000 is for t...

Q: Explain the difference between the entity and aggregate theories applicable to a

Explain the difference between the entity and aggregate theories applicable to a partnership and give an example of the effect of these theories on partnership transactions.

Q: Explain the difference between inside and outside basis for partners and the

Explain the difference between inside and outside basis for partners and the partnership.

Q: What is the difference between a partner’s guaranteed payment and his salary

What is the difference between a partner’s guaranteed payment and his salary?