Tax consequences of incorporation

1. Pete pays $10,000 for 100 shares of stock in Fast Eddies, Inc. Briefly discuss the tax consequences of this transaction for Pete and Fast Eddies, Inc. 2. Pete bought land ten years ago for $2,000. Today the land has a value of $10,000 and Pete transfers it to Fast Eddies, Inc. for 100 shares in Fast Eddies, Inc. Brief ...continues

Tax consequences of incorporation

On 8/20/X3 as part of a larger Code Section 351 transfer, T transferred a machine that she had been using in her sole proprietorship. The machine that T transferred had been placed into service on 9/30/X1 and was being depreciated by T using 200%-DB over 7 years (HY convention). T's depreciation schedule for the asset is pres ...continues

Tax consequences of incorporation

T was one of several individuals who transferred property to a new corporation in a section 351 exchange. T transferred the following property: Basis/FMV Accounts receivable 0/20,000 Machinery (D/recap = $10,000) 20,000/50,000 Capital Asset (LT H/ ...continues

Alternative Minimum Tax & Property Transactions

Question 1 All of a corporation's AMT is available for carryover as a minimum tax credit regardless of whether the adjustments and preferences originate from timing differences or AMT exclusions. True False Question 2 In calculating the adjusted basis of property, the basis is reduced by the lesser of the cost ...continues

Alternative Minimum Tax & Property Transactions

Question 11 Steve purchased his home for $500,000. As a sole proprietor, he operates a certified public accounting practice in his home. For this business, he uses one room exclusively and regularly as a home office. In Year 1, $3,042 of depreciation expense on the home office was deducted on his income tax return. In Year ...continues

Tax Questions

4. What types of income disqualify taxpayers from claiming the EIC? 5. What is the definition of being self-employed? What distinguishes a self-employed individual from an employee? Why is this distinction important? Explain.

Tax

6. Suppose you live 60 miles from your old place of business, but you have changed jobs with a new job site 100 miles away from your old residence. You buy a new home one-mile from your new business. Are you qualified for a moving expense deduction? Explain the requirements for moving expense deductions.

Refund of overpaid Social Security taxes; Bad Debt write off; forgiveness of debt

8 When could overpayment of Social Security taxes occur? How does one go about getting a refund of excess Social Security payments? 9 How is the write-off of a bad debt handled on the tax return? How does the debtor have to handle the forgiveness of the debt? Why?

Tax: home office deduction; difference in avoidance and evasion

11. Are you qualified to claim a home office deduction if you have another full-time office? Explain. 12. What is the difference between tax avoidance and tax evasion?

Prepare Chambers tax return Form 1040 and Schedules A, B, C, and SE for the CURRENT year.

Kelly and Chanelle Chambers, ages 47 and 45, are married and live at 584 Thoreau Drive, Boston, MA 59483. Kelly's Social Security number is 254-93-9483 and Chanelle's is 374-48-2938. The Chambers have two children: Emma, age 23, and Chet, age 19. Their Social Security numbers are 385-64-8496 and 385-68-9462, respectively. Emma i ...continues