Few straight questions

Please show details 21-rose corporation made a $1 million interest-fee loan to its new chief executive officer on july 1, 2008, so that he could acquire a personal residence. the federal rate is 6% what are the tax consequences of the loan to the CEO and to rose? 6-ted is age 92 and is suffering from a terminal illness. h ...continues

Taxation

1. John Smith, as the owner of an apartment building, receives and makes the following payments during 2008. Received in Jan 2008 rent that was due in Dec 2007.... $5,000 Received in Dec 2008 rent not due until Jan 2009.... $4,000 Security deposit which is to be refunded when tenant vacates the apartment... $500 How ...continues

Taxation II

1. Robert Reed, a bachelor, maintains his parents in a nursing home. They have no income of their own and are completely dependent on their son. His parents are 75 and 72 years of age. Robert has the following sources of income. Salary... $45,000 Interest on municipal bonds... 750 Interest on bank accounts... 800 Dividends ...continues

Tax: Fred Peters $10,000 payment on behalf of son Jack. Is it a deduction for tax purposes for Fred?

3. In the current year, Fred Peters paid $10,000 of the business interest expense on a loan made to his son Jack, age 30, during the year. Jack was planning to file for bankruptcy and avoid making the interest payment, but Fred made the payment in order to avoid embarrassment for the family. Can Fred claim a business interest ex ...continues

How do the transactions in the divorce agreement affect Arnold's and Barbara's taxable income?

2. Arnold and Barbara Cane were divorced in June 2008. Pursuant to the divorce decree, Arnold is obliged to preform as follows: A. Transfer title of their personal home to Barbara. They purchased the house in 1992 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25 y ...continues

Recognized Gain

Please help me with the following showing calculations: Lemonade, LLC distributes property to Arlene, one of its members. At the time of the distribtutions, Arlene has an outside basis of $50,000. The FMV of the property is $90,000 and its inside tax basis to Lemonade is $70,000. this is a nonliquidiating distribution. What i ...continues

Corpotate Reorganizations

As part of a Type A reorganization, a creditor swaps an old bond with a basis of $700 and a principal of $1000 for a new convertible bond with a value of $750 and a principal of $1,200. The low value is due to the lack of security and low coupon rate. What is the bondholder's realized and recognized gain on the reorganization? W ...continues

Deduction and Credits

What is the difference between deductions and Credits? Which would be more beneficial to a taxpayer?

Tax Credits

List and discuss some types of tax credits. Do you agree those tax credits are fair and good for our society?

Taxation

Mary is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building in which she rents out space to tenants. She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2008, she incurred a loss, for tax purpos ...continues