Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distribute...
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distributes $10,000 to Joe.
How much taxable income does Joe report as a result of this distribution?
What is Joes tax basis in the corporation after the distribution?
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Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distribute...
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes....
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distributes $10,000 to Joe. How much taxable income does Joe report as a result of this distribution? What is Joes tax basis in the corporation after the distribution?
joe owns 10% of an LLC that is treated as a partnersihp for tax purposes. His basis in the LLC is $50,000. The LLC has sigificant undistributed earnings. The LLC distributes $10,000 to Joe. How much t...
joe owns 10% of an LLC that is treated as a partnersihp for tax purposes. His basis in the LLC is $50,000. The LLC has sigificant undistributed earnings. The LLC distributes $10,000 to Joe. How much taxable income does Joe report as a result of this distribution? What is Joes tax basis in the LLC after the distribution?
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P...
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $32,000. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $50,000 to its sole shareholder, Abby, whose stock basis is $10,000. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: ? Return of capital: ? Capital gain: ?...
In Year 1, Reese Corporation (a C-Corporation) reported a loss for tax purposes of $50,000. How...
In Year 1, Reese Corporation (a C-Corporation) reported a loss for tax purposes of $50,000. How much tax will Reese Corporation pay in year 2 if it reports taxable income from operations of $30,000 under the following assumptions? a.Year 1 is 2017 b.Year 1 is 2018
Interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10...
interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10,000), and equipment (FMV $2,000; basis $1,000). Sam's marginal tax rate is 24% and his long-term capital gains tax rate is 15%. 2. Sam receives a proportionate nonliquidating distribution when the basis of his partnership a. How much gain or loss does Sam recognize? Gain /Loss) b. What is Sam's tax liability/benefit on the distribution? (Liability /Benefit) c. What is Sam's basis in the inventory? d. What...
Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with...
Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with a basis of $10,000, and Sherman Forest owns 25 shares with a basis of $30,000. Elm Corporation has a $50,000 net operating loss carryover and the following assets (all held long-term): Basis Fair Market Value Cash $20,000 $20,000 Installment Note $10,000 $40,000 Land $1,000 $10,000 Equipment (all Sec. 1245 recapture) $5,000 $10,000 $36,000 $80,000 What are the tax consequences if Elm Corporation adopts...
3. Southern Corp., an S corporation, has no corporate E&P from years as a C corp....
3. Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At the end of the year, it distributes a baseball court to its 50% shareholder, Jack, in an operating distribution. The fair market value of the court is $80,000, and its tax basis is $50,000. Mr. Jack's basis in his stock is $15,000. A. How much gain (loss) does Mr. Jack recognize as a result of the distribution (there may be more than one...
In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In...
In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. How much tax will Willow Corp. pay in year 3, what is its NOL carryover to year 4, and when will the NOL expire under the following assumptions? (New Corporate income tax rate has been mentioned...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $53,400. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $80,100 to its sole shareholder, Abby, whose stock basis is $16,020. How is the distribution treated for tax purposes? If an amount is zero, enter "O" As a result the distribution Abby has the following: Dividend income: $ Return of...
Jack owns 100% stock of Verizon Inc. His basis in the stock is $24,000. Verizon had...
Jack owns 100% stock of Verizon Inc. His basis in the stock is $24,000. Verizon had $36,000 accumulated E&P. During the current year Verizon has negative E&P of $32,000. On April 1 Verizon distributed $40,000 in cash to Jack. Only July 1 Jack sold half his Verizon stock to Joanne for $50,000.On December 31 Verizon distributed $20,000 cash to Jack and $20,000 cash to Joanne. How is the $20,000 December distribution to Jack for tax purposes? a. $20,000 dividend b....
interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10,000), and equipment (FMV $2,000; basis $1,000). Sam's marginal tax rate is 24% and his long-term capital gains tax rate is 15%. 2. Sam receives a proportionate nonliquidating distribution when the basis of his partnership a. How much gain or loss does Sam recognize? Gain /Loss) b. What is Sam's tax liability/benefit on the distribution? (Liability /Benefit) c. What is Sam's basis in the inventory? d. What...
3. Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At the end of the year, it distributes a baseball court to its 50% shareholder, Jack, in an operating distribution. The fair market value of the court is $80,000, and its tax basis is $50,000. Mr. Jack's basis in his stock is $15,000. A. How much gain (loss) does Mr. Jack recognize as a result of the distribution (there may be more than one...
In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. How much tax will Willow Corp. pay in year 3, what is its NOL carryover to year 4, and when will the NOL expire under the following assumptions? (New Corporate income tax rate has been mentioned...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $53,400. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $80,100 to its sole shareholder, Abby, whose stock basis is $16,020. How is the distribution treated for tax purposes? If an amount is zero, enter "O" As a result the distribution Abby has the following: Dividend income: $ Return of...
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