Questions from Individual Taxation

Q: In general, how are unincorporated entities classified for tax purposes?

In general, how are unincorporated entities classified for tax purposes?

Q: What are the differences, if any, between the legal and

What are the differences, if any, between the legal and tax classification of business entities?

Q: A taxpayer owns a home in Salt Lake City, Utah and

A taxpayer owns a home in Salt Lake City, Utah and a second home in St. George, Utah. How does the taxpayer determine which home her principal residence is for tax purposes?

Q: Who pays the first level of tax on a C corporation’s income

Who pays the first level of tax on a C corporation’s income? What is the tax rate applicable to the first level of tax?

Q: Who pays the second level of tax on a C corporation’s income

Who pays the second level of tax on a C corporation’s income? What is the tax rate applicable to the second level of tax and when is it levied?

Q: Is it possible for shareholders to defer or avoid the second level

Is it possible for shareholders to defer or avoid the second level of tax on corporate income? Briefly explain.

Q: How does a corporation’s decision to pay dividends affect its overall tax

How does a corporation’s decision to pay dividends affect its overall tax rate [(corporate level tax + shareholder level tax)/taxable income]?

Q: Is it possible for the overall tax rate on corporate taxable income

Is it possible for the overall tax rate on corporate taxable income to be lower than the tax rate on flow-through entity taxable income? If so, under what conditions would you expect the overall corpo...

Q: Evaluate the following statement: “When dividends and long-term

Evaluate the following statement: “When dividends and long-term capital gains are taxed at the same rate, the overall tax rate on corporate income is the same whether the corporation distributes its a...

Q: If XYZ corporation is a shareholder of BCD corporation, how many

If XYZ corporation is a shareholder of BCD corporation, how many levels of tax is BCD’s before-tax income potentially subject to? Has Congress provided any tax relief for this result? Explain.