Questions from General Taxation

Q: Gail and Harry own the GH Partnership. They have conducted the

Gail and Harry own the GH Partnership. They have conducted the business as a partnership for 10 years. The bases for their partnership interests are as follows. GH Partnership holds the following asse...

Q: Hector and Walt are purchasing the Copper Partnership from Jan and Gail

Hector and Walt are purchasing the Copper Partnership from Jan and Gail for $700,000; Hector and Walt will be equal partners. During the negotiations, Jan and Gail succeeded in having the transaction...

Q: Vladimir owns all of the stock of Ruby Corporation. The fair

Vladimir owns all of the stock of Ruby Corporation. The fair market value of the stock (and Ruby’s assets) is about four times his adjusted basis for the stock. Vladimir is negotiating with an investo...

Q: Maurice Allred is going to purchase either the stock or the assets

Maurice Allred is going to purchase either the stock or the assets of Jewel Corporation. All of the Jewel stock is owned by Charley. Maurice and Charley agree that Jewel is worth $700,000. The tax bas...

Q: Using the legend provided, indicate which form of business entity each

Using the legend provided, indicate which form of business entity each of the following characteristics describes. Some of the characteristics may apply to more than one form of business entity. a. Ha...

Q: Derk owns 250 shares of stock in Rose Corporation. The

Derk owns 250 shares of stock in Rose Corporation. The remaining 750 shares of Rose are owned as follows: 150 by Derk’s daughter Rosalie, 200 by Derk’s aunt Penelope, and 400 by a partnership in whic...

Q: Caramel Corporation has 5,000 shares of stock outstanding. In

Caramel Corporation has 5,000 shares of stock outstanding. In a qualifying stock redemption, Caramel distributes $145,000 in exchange for 1,000 of its shares. At the time of the redemption, Caramel ha...

Q: Samantha, an executive, has AGI of $100,000

Samantha, an executive, has AGI of $100,000 before considering income or loss from her miniature horse business. Her outside income comes from prizes for winning horse shows, stud fees, and sales of y...

Q: Casey is in the 15% marginal tax bracket, and Jean

Casey is in the 15% marginal tax bracket, and Jean is in the 35% marginal tax bracket. Their employer is experiencing financial difficulties and cannot continue to pay for the company’s health insuran...

Q: Does the taxpayer recognize gross income in the following situations? Explain

Does the taxpayer recognize gross income in the following situations? Explain. a. Ava is a filing clerk at a large insurance company. She is permitted to leave the premises for her lunch, but she usu...