Questions from General Taxation

Q: How is the net investment income surtax calculated for a trust?

How is the net investment income surtax calculated for a trust? Explain how a trust can avoid this tax.

Q: What is a present interest and how is it distinguished from a

What is a present interest and how is it distinguished from a future interest?

Q: Under what circumstances will a gift made in trust for a minor

Under what circumstances will a gift made in trust for a minor child qualify for the annual exclusion?

Q: Explain why Congress added the kiddie tax provisions and which taxpayers are

Explain why Congress added the kiddie tax provisions and which taxpayers are affected by it.

Q: Explain the basic provisions of the Coverdell Education Saving plan.

Explain the basic provisions of the Coverdell Education Saving plan.

Q: Tinker incorporates his sole proprietorship by transferring a building, equipment,

Tinker incorporates his sole proprietorship by transferring a building, equipment, and inventory to the Tinker Corporation in exchange for all its stock. The building has a value of $750,000 and a bas...

Q: Jim and Angie form the JAZ Partnership with Zoe by contributing $

Jim and Angie form the JAZ Partnership with Zoe by contributing $75,000 each to partnership equity. Zoe, the third partner, contributes property with a basis of $50,000 and fair market value of $75,00...

Q: X, Y, and Z form XYZ Partnership by contributing cash

X, Y, and Z form XYZ Partnership by contributing cash and property as follows: X contributes $40,000 cash for a 20 percent interest. Y contributes property valued at $80,000 for a 40 percent interest....

Q: Explain the difference between a realized gain and a recognized gain.

Explain the difference between a realized gain and a recognized gain.

Q: Columbo Corporation, a calendar-year corporation, began business in

Columbo Corporation, a calendar-year corporation, began business in 2014. With the initial capital contributions from its sole shareholder, it purchased a building on March 12 for $250,000. It also pu...