Questions from General Taxation

Q: Pineview Corporation placed an asset (three-year MACRS class life

Pineview Corporation placed an asset (three-year MACRS class life) costing $5,000 in service on June 1, 2015. Complete the table below by providing the AMT adjustment and indicate whether the adjustme...

Q: Candlewood LLC began its business on September 1; it uses a

Candlewood LLC began its business on September 1; it uses a calendar tax and accounting year. Candlewood incurred $6,500 in legal fees for drafting the LLC’s operating agreement and $3,000 in accounti...

Q: Henrietta transfers cash of $75,000 and equipment with a

Henrietta transfers cash of $75,000 and equipment with a fair market value of $25,000 (basis to her as a sole proprietor, $10,000) in exchange for a 40% profit and loss interest worth $100,000 in the...

Q: Wozniacki and Wilcox form Jewel LLC, with each investor receiving a

Wozniacki and Wilcox form Jewel LLC, with each investor receiving a one- half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning...

Q: At the beginning of the tax year, Barnaby’s basis in the

At the beginning of the tax year, Barnaby’s basis in the BBB Partnership was $50,000, including his $5,000 share of partnership debt. At the end of the tax year, his share of the entity’s debt was $8,...

Q: Mason performs services for Isabella. In determining whether Mason is an

Mason performs services for Isabella. In determining whether Mason is an employee or an independent contractor, comment on the relevance of each of the factors listed below. a. Mason performs services...

Q: Rex, age 55, is an officer of Blue Company,

Rex, age 55, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2015: • Hospitalization insurance premiums for Rex and his dependents. The cost...

Q: Belinda spent the last 60 days of 2015 in a nursing home

Belinda spent the last 60 days of 2015 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 to- ward the cost of her stay. Belinda also received...

Q: Dana, age 54, has a traditional deductible IRA with an

Dana, age 54, has a traditional deductible IRA with an account balance of $107,600, of which $77,300 represents contributions and $30,300 represents earnings. In 2015, she converts her traditional IRA...

Q: Geranium, Inc., has the following net § 1231 results for

Geranium, Inc., has the following net § 1231 results for each of the years shown. What is the nature of the net gain in 2014 and 2015?