Questions from Individual Taxation

Q: What is a permanent establishment, and why is it an important

What is a permanent establishment, and why is it an important part of most income tax treaties?

Q: People sometimes confuse the applicable credit with the exemption equivalent. Describe

People sometimes confuse the applicable credit with the exemption equivalent. Describe how these terms differ and how they are related.

Q: Santini’s new contract for 2018 indicates the following compensation and benefits:

Santini’s new contract for 2018 indicates the following compensation and benefits: Benefit Description Amount  Salary $130,000  Health insurance $9,000  Restricted stock granted $2,500  B...

Q: Distinguish between exclusion and deferral in a property transaction.

Distinguish between exclusion and deferral in a property transaction.

Q: Sylvana is given a job offer with two alternative compensation packages to

Sylvana is given a job offer with two alternative compensation packages to choose from. The first package offers her $250,000 annual salary with no qualified fringe benefits. The second package offers...

Q: In the current year, Jill, age 35, received a

In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $90,000 annual salary with no qualified fringe benefits,...

Q: Convers Corporation (calendar year-end) acquired the following assets

Convers Corporation (calendar year-end) acquired the following assets during the current tax year: Asset  Placed in Service Date Original Basis  Machinery October 25 $70,000  Computer Equi...

Q: Independence Corporation needs to replace some of the assets used in its

Independence Corporation needs to replace some of the assets used in its trade or business and is contemplating the following exchanges: Exchange Asset Given Up by Independence Asset Received by In...

Q: Compute MV, Corp.’s 2018 taxable income given the following

Compute MV, Corp.’s 2018 taxable income given the following information relating to its year 1 activities. Also, compute MV’s Schedule M-1 assuming that MV’s federal income tax expense for book purpos...

Q: Compute HC Inc.’s current year taxable income given the following

Compute HC Inc.’s current year taxable income given the following information relating to its 2018 activities. Also, compute HC’s Schedule M-1 assuming that HC’s federal income tax expense for book pu...