Questions from Individual Taxation

Q: How does a taxpayer determine whether a dwelling unit is treated as

How does a taxpayer determine whether a dwelling unit is treated as a residence or nonresidence for tax purposes?

Q: Is a current-year net operating loss of a C corporation

Is a current-year net operating loss of a C corporation available to offset income from the corporation in other years? Explain.

Q: A C corporation has a current year loss of $100,

A C corporation has a current year loss of $100,000. The corporation had paid estimated taxes for the year of $10,000 and expects to have this amount refunded when it files its tax return. Is it possi...

Q: Does a C corporation gain more tax benefit by carrying forward a

Does a C corporation gain more tax benefit by carrying forward a net operating loss to offset other taxable income two years after the NOL arises or by carrying the NOL back two years? Explain.

Q: In its first year of existence, KES, an S corporation

In its first year of existence, KES, an S corporation, reported a business loss of $10,000. Kim, KES’s sole shareholder, reports $50,000 of taxable income from sources other than KES. What must you kn...

Q: Why are S corporations less favorable than C corporations and entities taxed

Why are S corporations less favorable than C corporations and entities taxed as partnerships in terms of owner-related limitations?

Q: Are C corporations or flow-through entities (S corporations and

Are C corporations or flow-through entities (S corporations and entities taxed as partnerships) more flexible in terms of selecting a tax year-end? Why are the tax rules in this area different for C c...

Q: Which entity types are generally allowed to use the cash method of

Which entity types are generally allowed to use the cash method of accounting?

Q: According to the tax rules, how are profits and losses allocated

According to the tax rules, how are profits and losses allocated to LLC members? How are they allocated to S corporation shareholders? Which entity permits greater flexibility in allocating profits an...

Q: Compare and contrast the FICA tax burden of S corporation shareholder-

Compare and contrast the FICA tax burden of S corporation shareholder-employees and LLC members receiving compensation for working for the entity (guaranteed payments) and business income allocations...