Questions from General Taxation

Q: Is a foreign corporation owned equally by 100 unrelated U.S

Is a foreign corporation owned equally by 100 unrelated U.S. citizens considered to be a controlled foreign corporation (CFC)? Explain.

Q: HiramCo, a U.S. entity, operates a manufacturing

HiramCo, a U.S. entity, operates a manufacturing business in both Mexico and Costa Rica, and it holds its investment portfolio in Sweden. How many foreign tax credit computations must HiramCo make? Be...

Q: Give a simple answer to Andre’s question: “If I move

Give a simple answer to Andre’s question: “If I move to the United States, how will the Federal government tax my widget sales and capital gains?” Andre will be living in New York City, where state an...

Q: Evaluate the following statement: Foreign persons never are subject to U

Evaluate the following statement: Foreign persons never are subject to U.S. taxation on U.S.-source investment income so long as they are not engaged in a U.S. trade or business.

Q: Continue to consider the case of the taxpayer in Problem 42.

Continue to consider the case of the taxpayer in Problem 42. Is it acceptable to you if the taxpayer purposely shifts its sales force among the states to reduce its tax liabilities? Data from Proble...

Q: State A enjoys a prosperous economy, with high real estate values

State A enjoys a prosperous economy, with high real estate values and compensation levels. State B’s economy has seen better days—property values are depressed, and unemployment is higher than in othe...

Q: Which of the following can be a shareholder of an S corporation

Which of the following can be a shareholder of an S corporation? a. Resident alien. b. Partnership. c. IRA. d. C corporation.

Q: Isaac and 121 of his close friends want to form an S

Isaac and 121 of his close friends want to form an S corporation. Isaac rea- sons that if he and his friends form a partnership, the partnership then can establish an S corporation and act as a single...

Q: In January 2015, Pelican, Inc., established an allowance for

In January 2015, Pelican, Inc., established an allowance for uncollectible accounts (bad debt reserve) of $70,000 on its books and increased the allowance by $120,000 during the year. As a result of a...

Q: Joey lives in North Carolina, a common law state. He

Joey lives in North Carolina, a common law state. He is a shareholder in an S corporation. If he marries a nonresident alien, will the S election terminate? Would your answer change if he lived in Lou...