Questions from General Taxation

Q: Katlin contributes land to a partnership with a basis of $44

Katlin contributes land to a partnership with a basis of $44,000 and an FMV of $56,000 in 2017. In 2019, when the FMV of the land is $58,000, the partnership distributes the land to Baily, another par...

Q: All of the following statements are correct concerning liquidating distributions of a

All of the following statements are correct concerning liquidating distributions of a partnership except: a. A loss can never be recognized. b. A distribution of money in excess of basis causes a gai...

Q: On November 1, Ashton sells her interest in XYZ Partnership to

On November 1, Ashton sells her interest in XYZ Partnership to Wayne for $200,000 cash and a release of liability of $30,000. Ashton’s basis at the beginning of the year was $125,000 (including the $3...

Q: Which of the following statements is correct? a.

Which of the following statements is correct? a. A calendar-year corporation must file its tax return no later than March 15 unless it requests an extension. b. A corporation is a legal entity that i...

Q: A corporation has a fiscal year-end of July. If

A corporation has a fiscal year-end of July. If the corporation does not receive an automatic extension of time to file its return, the return will be due on the 15th of a. December. b. November. c....

Q: Two individuals form a corporation and own all of its stock.

Two individuals form a corporation and own all of its stock. One individual contributes cash, and the other contributes property encumbered by a mortgage. The new corporation assumes the mortgage. Whi...

Q: Explain the net operating loss rules for 2018 and later.

Explain the net operating loss rules for 2018 and later.

Q: Tameka and Janelle form a corporation in which each will own 50

Tameka and Janelle form a corporation in which each will own 50% of the stock. Tameka contributes $50,000 in cash. Janelle contributes property with a basis of $30,000 and an FMV of $60,000. She recei...

Q: Svetlana forms a corporation in which she is the sole shareholder.

Svetlana forms a corporation in which she is the sole shareholder. She contributes a vehicle with a basis of $15,000 and an FMV of $8,000 in exchange for stock. She also contributes cash of $2,000. Sv...

Q: Annabelle forms a corporation in which she is the sole shareholder.

Annabelle forms a corporation in which she is the sole shareholder. She transfers $20,000 cash plus land with a $100,000 adjusted basis and a $160,000 FMV in exchange for all the stock of the corporat...