Q: Janet, age 29, is unmarried and is an active participant
Janet, age 29, is unmarried and is an active participant in a qualified retirement plan. Her modified AGI is $63,000 in 2015. a. Calculate the amount Janet can contribute to a traditional IRA and the...
See AnswerQ: Carri and Dane, ages 34 and 32, respectively, have
Carri and Dane, ages 34 and 32, respectively, have been married for 11 years, and both are active participants in employer qualified retirement plans. Their total AGI in 2015 is $186,000, and they ear...
See AnswerQ: Rafael transfers the following assets to Crane Corporation in exchange for all
Rafael transfers the following assets to Crane Corporation in exchange for all of its stock. (Assume that neither Rafael nor Crane plans to make any special tax elections at the time of incorporation....
See AnswerQ: In 2015, Susan’s sole proprietorship earns $300,000 of
In 2015, Susan’s sole proprietorship earns $300,000 of self-employment net income (after the deduction for one-half of self-employment tax). a. Calculate the maximum amount Susan can deduct for contr...
See AnswerQ: C&C Properties is an S corporation that owns two rental
C&C Properties is an S corporation that owns two rental real estate under- takings: Carrot Plaza and Cantaloupe Place. Both properties produce an annual $10,000 operating loss. C&C’s Schedule K aggreg...
See AnswerQ: On March 2, the two 50% shareholders of a calendar
On March 2, the two 50% shareholders of a calendar year corporation decide to elect S status. One of the shareholders, Terry, purchased her stock from a previous shareholder (a nonresident alien) on J...
See AnswerQ: Scott Tyrney owns 21% of an S corporation. He is
Scott Tyrney owns 21% of an S corporation. He is confused with respect to the amounts of the corporate AAA and his stock basis. Write a memo to the tax research file, identifying the key differences b...
See AnswerQ: Junie’s share of her S corporation’s net operating loss is $50
Junie’s share of her S corporation’s net operating loss is $50,000, but her stock basis is only $30,000. Point out the Federal income tax consequences that Junie must face.
See AnswerQ: Mary is a shareholder in CarrollCo, a calendar year S corporation
Mary is a shareholder in CarrollCo, a calendar year S corporation. At the be- ginning of the year, her stock basis is $10,000, her share of the AAA is $2,000, and her share of corporate AEP is $6,000....
See AnswerQ: The profit and loss statement of Kitsch Ltd., an S corporation
The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information a...
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