Questions from General Taxation

Q: Mr. Rouse’s tax situation for the year is very complicated.

Mr. Rouse’s tax situation for the year is very complicated. He engaged in several multi-million dollar investment transactions involving unresolved tax issues. He has instructed his accountant to take...

Q: The management of Nixon Company must decide between locating a new branch

The management of Nixon Company must decide between locating a new branch office in foreign Jurisdiction F or foreign Jurisdiction G. Regardless of location, the branch operation will use tangible pro...

Q: Calculate the total Social Security and Medicare tax burden on a sole

Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2019 profit of $300,000, assuming a single sole proprietor with no other earned income.

Q: Corporation VB was formed in 2019. Immediately prior to year-

Corporation VB was formed in 2019. Immediately prior to year-end, VB is considering a $500,000 deductible expenditure. It can either make the expenditure before the end of 2019, or wait until 2020. Ho...

Q: Company Y began business in February 2019. By the end of

Company Y began business in February 2019. By the end of the calendar year, it had billed its clients for $3.5 million of services and had incurred $800,000 of operating expenses. As of December 31, i...

Q: FG Inc. owned a 3 percent limited interest in a partnership

FG Inc. owned a 3 percent limited interest in a partnership that has been unprofitable for several years. The partnership recently informed its partners that they must contribute additional capital if...

Q: Javier is a full-time employee of B Inc. and

Javier is a full-time employee of B Inc. and operates a sole proprietorship. This year, his salary was $70,000, and his net earnings from self-employment were $60,000.

Q: Mr. and Mrs. Chou file a joint income tax return

Mr. and Mrs. Chou file a joint income tax return. Mr. Chou reports the income from his full-time landscaping business on a Schedule C, which lists him as the sole proprietor. He also reports 100 perce...

Q: Travis is a professional writer who maintains his business office in one

Travis is a professional writer who maintains his business office in one room of his personal residence. The office contains Travis’s desk, filing cabinets, personal computer and printer, copying mach...

Q: Lola owns a 15 percent limited interest in AF Partnership, which

Lola owns a 15 percent limited interest in AF Partnership, which uses a calendar year for tax purposes. On April 12, Lola sold her entire interest to the R Corporation; consequently, she was a partner...