Taxation - True or False

1. As a general rule all of the liabilities of a partnership, including those assumed from a partner, are shared among the partners for purposes of determining outside basis. 2. Partnership liability is recourse to the extent that no partner has personal liability for repayment. 3. If a shareholder owns, directly or indi ...continues

Accounting - True or False

14. The threat of undisclosed or contingent liabilities is minimized if assets are acquired through a merger. 15. As a general rule, a tax-deferred acquisition is financed primarily with stock of the acquiring corporation. 16. Investment banking fees paid by the acquiring corporation as part of a taxable merger are deduc ...continues

Short Case Brief OLD COLONY TRUST CO. v. COM'R OF INTERNAL REVENUE, 279 U.S. 716 (1929)

Short Case Brief OLD COLONY TRUST CO. v. COM'R OF INTERNAL REVENUE, 279 U.S. 716 (1929). See attached file for full problem description.

Charity Contribution

Ross, a calendar-year, accrual basis S corporation, makes regular and substantial contributions to local tax-exempt charitable organizations. On December 20, its board of directors authorized a $175,000 contribution to the Salvation Children's Clinic. The corporation paid the contribution on January 25. Ross' ordinary business i ...continues

Terms commonly used in tax practice

I am looking for an explanation or definition and maybe a couple examples of: Income from an "Active Business" Income from a "Specified Investment Business" Income from a "Personal Services Business" I am having a hard time understanding what the differences are between the three.

Alternative Minimum Tax

Sharon, a single taxpayer, has taxable income of $100,000, a regular tax liability of $26,560, a positive AMT adjustment due to limitations on itemized deductions of $20,000, and tax preferences of $25,000 in 2006. What is Sharon’s AMT for 2006? Can you please show me step by step how this is calculated?

Tax Law Case

Case: Gregory v. helvering, 293 US 465 (1935). If you can't open the case you can find at at findlaw.com

Don't let the tax tail wag the dog

The four "maxims" of tax planning are relatively straightforward, and don't need rehashing here. The text also mentions considering "nontax" factors, which is often times a very important and very overlooked aspect of the decision making process. There is a saying common among CPAs that goes "don't let the tax tail wag the ...continues

Advanced Business Taxation

Relate IRC Sec. 351 to the substance over form doctrine. What purpose does the control requirement of IRC Sec. 351 serve?

Taxation

Mr. Tucker owns investment land ($690,000 FMV AND $228,000 adjusted basis) that he is interested in selling. Several prospective purchasers have offered to pay cash, but Mr. Tucker wants to avoid recognizing his entire gain in the year of sale. Accordingly, he is considering selling the land to the Tucker Family Corporation in r ...continues