HOPE Scholarship Credit and Lifetime Learning Credit. John and Mary, a married couple who file a joint return, have two dependent children in college, Jeff and Brooke. Jeff attends Pepper College, a private, liberal arts college, and Brooke attends State U. During the calendar year 2006, Jeff was a sophomore during the Spring ...continues
1. Allan and Sarah are not married. Sarah has a low income but Allan has a high income. a. How might a loan from Sarah to Allan be advantageous to them? b. How might it be advantageous for Allan to rent something from Sarah? 2. Allan and Sarah are married. Allan passes away and Sarah is the sole beneficiary of Allan' ...continues
Betty's basis in her partnership interest is $90,000 and she receives distributions of $35,000 cash and inventory (basis to the partnership of $22,000 and a fair market value of $28,000). No land is distributed. (A) How much gain or loss, if any, must Betty recognize as a result of the distribution. (B) What basis will Betty ...continues
Dependency Exemptions, filing requirements, and installment sale
See attached file for full problem description.
Taxation questions for S Corporations
Are these true or false. I think I have a pretty good idea of what constitutes as S corporation but these questions I'm not sure of. Thanks for your advice. (1) An S corporation election allows shareholders to realize tax benefits from losses immediately. (2) A NOL carryover from a C year can be used in an S corporation ye ...continues
Tax Questions about corporations and partnerships
All should be answered true or false. (1) An S corporation shareholder's stock basis is increased by that shareholder's share of corporate profits, but not by a share of increases in corporate liabilities. (2) The general objective of the tax on unrelated business income is to tax such income as if the entity were a corp ...continues
Are these true or false? (1) A state cannot levy a tax on a business unless the business was incorporated in the state. (2) A person who died on December 31, 2005, may pay more estate tax than one, similarly situated, who died on January 1, 2006. (3) Even if no gift tax is due, a Federal gift tax return may need to be ...continues
For a limited liability company with four owners, A. An election can be made to be taxed as an S corporation. B. The entity is taxed as a corporation. C. An election can be made to be taxed as a partnership. D. None of the above. E. All of the above. I know that they would normally be taxed as a partnership so that ...continues
In which, if any, of the following independent situations has Geraldine made a gift? A. Geraldine gives her 19-year old son $20,000 to be used by him for his college expenses. B. Geraldine buys her grandfather a new Jaguar for his birthday. C. Geraldine sends $20,000 to Duke University to cover her nephew's tuition. The ne ...continues
Which of the following is not immune from state income taxation, even if P.L. 86-272 is in effect? A. Sale of a factory building. B. Sale of office equipment that constitutes inventory to the purchaser. C. Sale of office equipment to be used in the taxpayer's business. D. All of the above are protected by P.L. 86-272 immu ...continues
