Questions from General Taxation

Q: Adam transfers property with an adjusted basis of $50,000

Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift Corporation for 90% of the stock. The property is subject to a liability of $60,000, which Swift assu...

Q: Tim is the vice president of western operations for Maroon Oil Company

Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company offic...

Q: Finch Construction Company provides the carpenters it employs with all of the

Finch Construction Company provides the carpenters it employs with all of the required tools. However, the company believes that this has led to some employees not taking care of the tools and to the...

Q: Rosa’s employer has instituted a flexible benefits program. Rosa will use

Rosa’s employer has instituted a flexible benefits program. Rosa will use the plan to pay for her daughter’s dental expenses and other medical expenses that are not covered by health insurance. Rosa i...

Q: Sparrow Corporation would like you to review its employee fringe benefits program

Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company’s president (Polly), who is also the majority sharehol...

Q: Ted works for Azure Motors, an automobile dealership. All employees

Ted works for Azure Motors, an automobile dealership. All employees can buy a car at the company’s cost plus 2%. The company does not charge employees the $300 dealer preparation fee that nonemployees...

Q: Several of Egret Company’s employees have asked the company to create a

Several of Egret Company’s employees have asked the company to create a hiking trail that employees could use during their lunch hour. The company owns vacant land that is being held for future expans...

Q: Bluebird, Inc., does not provide its employees with any tax

Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospital and medical bene- fits insurance plan that will cost approximately $9...

Q: George is a U.S. citizen who is employed by

George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2015, George began working in London. He worked there until January 31, 2016, when he transferred t...

Q: William is employed by an accounting firm and uses his automobile in

William is employed by an accounting firm and uses his automobile in connection with his work. During the month of October 2015, he works at the office for 3 days and participates in the audit of a ke...