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Solution Manual for Concepts in Federal Taxation 2019 26th Edition by Murphy

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Solution Manual for Concepts in Federal Taxation 2019 26th Edition by Murphy

CHAPTER 1
UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW
SOLUTIONS TO PROBLEM MATERIALS
DISCUSSION QUESTIONS
1. (LO 1) When enacting tax legislation, Congress often is guided by the concept of revenue neutrality
so that any changes neither increase nor decrease the net revenues raised under the prior rules.
Revenue neutrality does not mean that any one taxpayer’s tax liability remains the same. Since this
liability depends on the circumstances involved, one taxpayer’s increased tax liability could be
another’s tax saving. Revenue-neutral tax reform does not reduce deficits, but at least it does not
aggravate the problem.
2. (LO 2) Economic, social, equity, and political factors play a significant role in the formulation of tax
laws. Furthermore, the IRS and the courts have had impacts on the evolution of tax laws. For
example, control of the economy has been an important economic consideration in passing a number
of laws (e.g., rapid depreciation, changes in tax rates).
3. (LO 2) The tax law encourages technological progress by allowing immediate (or accelerated)
deductions and tax credits for research and development expenditures.
4. (LO 2) Saving leads to capital formation and thus makes funds available to finance home construction
and industrial expansion. For example, the tax laws provide incentives to encourage savings by giving
private retirement plans preferential treatment.
5. (LO 2)
a. Section 1244 allows ordinary loss treatment on the worthlessness of small business
corporation stock. Since such stock normally would be a capital asset, the operation of § 1244
converts a less desirable capital loss into a more attractive ordinary loss. Such tax treatment
was designed to aid small businesses in raising needed capital through the issuance of stock.
b. The S corporation election allows the profits (or losses) of the corporation to flow through to
its individual shareholders (avoiding the corporate income tax). In addition, the qualified
business income deduction will apply to any flow-through profits (allowing a maximum 20%
deduction to the shareholders). However, with the corporate tax rate being 21% (and
individual marginal tax rates potentially being higher), individuals will need to compare the
benefits of avoiding the corporate tax rate with the taxes on any S corporation flow-through
profits.
6. (LO 2) Reasonable persons can, and often do, disagree about what is fair or unfair. In the tax area,
moreover, equity is generally tied to a particular taxpayer’s personal situation. For example, one
equity difference relates to how a business is organized (i.e., partnership versus corporation). Two
businesses may be equal in size, similarly situated, and competitors in the production of goods or
services, but they may not be comparably treated under the tax law if one is a partnership and the
other is a corporation. The corporation is subject to a separate Federal income tax of 21%; the
partnership is not. The tax law can and does make a distinction between these business forms. Equity,
then, is not what appears fair or unfair to any one taxpayer or group of taxpayers. Equity is, instead,
what the tax law recognizes.
1-2 2019 Corporations Volume/Solutions Manual
© 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7. (LO 2) This deduction can be explained by social considerations. The deduction shifts some of the
financial and administrative burden of socially desirable programs from the public (the government)
sector to the private (the citizens) sector.
8. (LO 2) Preferential treatment of private retirement plans encourages saving. Not only are
contributions to Keogh (H.R. 10) plans and certain Individual Retirement Plans (IRA) deductible, but
income from these contributions accumulates on a tax-free basis.
9. (LO 2) The availability of percentage depletion on the extraction and sale of oil and gas and specified
mineral deposits and a write-off (rather than capitalization) of certain exploration costs encourage the
development of natural resources.
10. (LO 2) Favorable treatment of corporate reorganizations provides an economic benefit. By allowing
corporations to combine and split without adverse consequences, corporations are in a position to
reduce their taxes and possibly more effectively compete with other businesses (both nationally and
internationally).
11. (LO 2) Although the major objective of the Federal tax law is the raising of revenue, other
considerations explain many provisions. In particular, economic, social, equity, and political factors
play a significant role. Added to these factors is the impact the Treasury Department, the Internal
Revenue Service, and the courts have had and will continue to have on the evolution of Federal tax
law.
12. (LO 2) The deduction allowed for Federal income tax purposes for state and local income taxes is not
designed to neutralize the effect of multiple taxation on the same income. At most, this deduction
provides only partial relief. The $10,000 overall limitation on state and local taxes (effective in 2018)
also reduces the tax benefit of these taxes. Only allowing a full tax credit would achieve complete
neutrality.
a. With the standard deduction, a taxpayer is, indirectly, obtaining the benefit of a deduction for
any state or local income taxes he or she may have paid. The standard deduction is in lieu of
itemized deductions, which include any allowed deductions for state and local income taxes.
b. If the taxpayer is in the 10% tax bracket, $1 of a deduction for state or local taxes would save
$.10 of Federal income tax liability. In the 32% tax bracket, the saving becomes $.32. The
deduction approach (as opposed to the allowance of a credit) favors high-bracket taxpayers.
13. (LO 2) Under the general rule, a transfer of a partnership’s assets to a new corporation could result in
a taxable gain. However, if certain conditions are met, § 351 postpones the recognition of any gain (or
loss) on the transfer of property by Heather to a controlled corporation.
The wherewithal to pay concept recognizes the inequity of taxing a transaction when Heather lacks
the means with which to pay any tax. Besides, Heather’s economic position would not change
significantly should the transfer occur. Heather owned the assets before the transfer and still would
own the assets after a transfer to a controlled corporation.
14. (LO 2) Yes, once incorporated, the business may be subject to the Federal corporate income tax.
However, the 21% corporate tax rate might be lower than Heather’s individual tax rates, especially if
dividends are not paid to Heather.
The corporate income tax could be avoided altogether by electing to be an S corporation. An
S corporation is generally not taxed at the corporate level; instead, the income flows through the
corporate veil and is taxed at the shareholder level. An S election allows a business to operate as a
corporation but be taxed like a partnership. With a partnership, there is no double tax. Income and
expenses flow through to the partners and are taxed at the partner level.

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DescriptionEdition: 26th Edition Format: Downloadable ZIP Fille Resource Type: Solution manual Duration: Unlimited downloads Delivery: Instant DownloadEdition: 10th Edition Format: Downloadable ZIP Fille Resource Type: Solution manual Duration: Unlimited downloads Delivery: Instant DownloadEdition: 37th Edition Format: Downloadable ZIP Fille Resource Type: Solution manual Duration: Unlimited downloads Delivery: Instant DownloadBy: Spilker Edition: 11th Edition Format: Downloadable ZIP Fille Resource Type: Test bank Duration: Unlimited downloads Delivery: Instant DownloadEdition: 42nd Edition Format: Downloadable ZIP Fille Resource Type: Solution manual Duration: Unlimited downloads Delivery: Instant DownloadEdition: 12th Edition Format: Downloadable ZIP Fille Resource Type: Solution manual Duration: Unlimited downloads Delivery: Instant Download
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Solution Manual for Concepts in Federal Taxation 2019 26th Edition by Murphy

CHAPTER 1 UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW SOLUTIONS TO PROBLEM MATERIALS DISCUSSION QUESTIONS 1. (LO 1) When enacting tax legislation, Congress often is guided by the concept of revenue neutrality so that any changes neither increase nor decrease the net revenues raised under the prior rules. Revenue neutrality does not mean that any one taxpayer’s tax liability remains the same. Since this liability depends on the circumstances involved, one taxpayer’s increased tax liability could be another’s tax saving. Revenue-neutral tax reform does not reduce deficits, but at least it does not aggravate the problem. 2. (LO 2) Economic, social, equity, and political factors play a significant role in the formulation of tax laws. Furthermore, the IRS and the courts have had impacts on the evolution of tax laws. For example, control of the economy has been an important economic consideration in passing a number of laws (e.g., rapid depreciation, changes in tax rates). 3. (LO 2) The tax law encourages technological progress by allowing immediate (or accelerated) deductions and tax credits for research and development expenditures. 4. (LO 2) Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion. For example, the tax laws provide incentives to encourage savings by giving private retirement plans preferential treatment. 5. (LO 2) a. Section 1244 allows ordinary loss treatment on the worthlessness of small business corporation stock. Since such stock normally would be a capital asset, the operation of § 1244 converts a less desirable capital loss into a more attractive ordinary loss. Such tax treatment was designed to aid small businesses in raising needed capital through the issuance of stock. b. The S corporation election allows the profits (or losses) of the corporation to flow through to its individual shareholders (avoiding the corporate income tax). In addition, the qualified business income deduction will apply to any flow-through profits (allowing a maximum 20% deduction to the shareholders). However, with the corporate tax rate being 21% (and individual marginal tax rates potentially being higher), individuals will need to compare the benefits of avoiding the corporate tax rate with the taxes on any S corporation flow-through profits. 6. (LO 2) Reasonable persons can, and often do, disagree about what is fair or unfair. In the tax area, moreover, equity is generally tied to a particular taxpayer’s personal situation. For example, one equity difference relates to how a business is organized (i.e., partnership versus corporation). Two businesses may be equal in size, similarly situated, and competitors in the production of goods or services, but they may not be comparably treated under the tax law if one is a partnership and the other is a corporation. The corporation is subject to a separate Federal income tax of 21%; the partnership is not. The tax law can and does make a distinction between these business forms. Equity, then, is not what appears fair or unfair to any one taxpayer or group of taxpayers. Equity is, instead, what the tax law recognizes. 1-2 2019 Corporations Volume/Solutions Manual © 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7. (LO 2) This deduction can be explained by social considerations. The deduction shifts some of the financial and administrative burden of socially desirable programs from the public (the government) sector to the private (the citizens) sector. 8. (LO 2) Preferential treatment of private retirement plans encourages saving. Not only are contributions to Keogh (H.R. 10) plans and certain Individual Retirement Plans (IRA) deductible, but income from these contributions accumulates on a tax-free basis. 9. (LO 2) The availability of percentage depletion on the extraction and sale of oil and gas and specified mineral deposits and a write-off (rather than capitalization) of certain exploration costs encourage the development of natural resources. 10. (LO 2) Favorable treatment of corporate reorganizations provides an economic benefit. By allowing corporations to combine and split without adverse consequences, corporations are in a position to reduce their taxes and possibly more effectively compete with other businesses (both nationally and internationally). 11. (LO 2) Although the major objective of the Federal tax law is the raising of revenue, other considerations explain many provisions. In particular, economic, social, equity, and political factors play a significant role. Added to these factors is the impact the Treasury Department, the Internal Revenue Service, and the courts have had and will continue to have on the evolution of Federal tax law. 12. (LO 2) The deduction allowed for Federal income tax purposes for state and local income taxes is not designed to neutralize the effect of multiple taxation on the same income. At most, this deduction provides only partial relief. The $10,000 overall limitation on state and local taxes (effective in 2018) also reduces the tax benefit of these taxes. Only allowing a full tax credit would achieve complete neutrality. a. With the standard deduction, a taxpayer is, indirectly, obtaining the benefit of a deduction for any state or local income taxes he or she may have paid. The standard deduction is in lieu of itemized deductions, which include any allowed deductions for state and local income taxes. b. If the taxpayer is in the 10% tax bracket, $1 of a deduction for state or local taxes would save $.10 of Federal income tax liability. In the 32% tax bracket, the saving becomes $.32. The deduction approach (as opposed to the allowance of a credit) favors high-bracket taxpayers. 13. (LO 2) Under the general rule, a transfer of a partnership’s assets to a new corporation could result in a taxable gain. However, if certain conditions are met, § 351 postpones the recognition of any gain (or loss) on the transfer of property by Heather to a controlled corporation. The wherewithal to pay concept recognizes the inequity of taxing a transaction when Heather lacks the means with which to pay any tax. Besides, Heather’s economic position would not change significantly should the transfer occur. Heather owned the assets before the transfer and still would own the assets after a transfer to a controlled corporation. 14. (LO 2) Yes, once incorporated, the business may be subject to the Federal corporate income tax. However, the 21% corporate tax rate might be lower than Heather’s individual tax rates, especially if dividends are not paid to Heather. The corporate income tax could be avoided altogether by electing to be an S corporation. An S corporation is generally not taxed at the corporate level; instead, the income flows through the corporate veil and is taxed at the shareholder level. An S election allows a business to operate as a corporation but be taxed like a partnership. With a partnership, there is no double tax. Income and expenses flow through to the partners and are taxed at the partner level.

Solution Manual for Taxation of Individuals 10th Edition by Spilker

ANSWERS TO QUESTIONS
  1. The time value of money is the idea that a dollar received today is worth more than a dollar to be received at any later date because it can be invested today to earn interest over time.
  2. Future value—The future value of a number of dollars is the amount that it will increase to in the future at i interest rate for n periods. The future value is the principal plus accumulated interest compounded each period.
Present value—The present value of a number of dollars, to be received at some specified date in the future, is that amount discounted to the present at i interest rate for n periods. It is the inverse of future value. In compound discounting, the interest is subtracted rather than added as in compounding.
  1. $10,000 x 2.59374 = $25,937 (rounded to the nearest dollar).
  2. $8,000 x .38554 = $3,084 (rounded to the nearest dollar).
  3. An annuity is a term that refers to equal periodic cash payments or receipts of an equal amount each period for two or more periods. In contrast to a future value of $1, or a present value of $1 (which involves a single contribution or amount), an annuity involves a series of equal contributions for a series of equal periods. An annuity may refer to a future value or a present value.
 
  6.  Table Values
Concepti = 5% n =4i = 10%; n =7i = 14%; n = 10
FV of $11.215511.94872 3.70722
PV of $10.822700.51316  0.26974
FV of annuity of $14.310139.4871719.33730
PV of annuity of $13.545954.86842  5.21612
  1. $1,000 x 14.48656 = $14,487. (rounded to the nearest dollar)
  Authors’ Recommended Solution Time (Time in minutes)    
  Mini-exercises  Exercises  Problems
No.TimeNo.TimeNo.Time
12110CP120
22215CP220
36315CP320
46415CP415
5 6 7 8 9 10 11 12  3 3 3 3 3 3 3 35 6 7  5 10 8PA1 PA2 PA3 PA4 PB1 PB2 PB3 PB4  20 20 20 15 20 20 20 15
          ANSWERS TO MINI-EXERCISES MC–1            
$500,000 ´ 0.46319 (Table C.2, n=10, i=8%)=$231,595
MC–2            
 $15,000 ´   6.14457 (Table C.4, n=10, i=10%)=$92,169
MC–3
     $100,000 (no PV)=$100,000
   $100,000 ´ 0.92593 (Table C.2, n=1, i=8%)=92,593
   $ 30,000 ´ 9.81815 (Table C.4, n=20, i=8%)=  294,545
Total=$487,138
MC–4
$25,000 ´ 15.93742 (Table C.3, n=10, i=10%)=$398,436
$15,000 ´ 57.27500 (Table C.3, n=20, i=10%)=$859,125
It is much better to save $15,000 for 20 years.

Solution Manual for Income Tax Fundamentals 2019 37th Edition Whittenburg

Solution Manual for Income Tax Fundamentals 2019, 37th Edition, Gerald E. Whittenburg, Steven Gill, ISBN-10: 1337703060, ISBN-13: 9781337703062
Table of Contents
1. The Individual Income Tax Return.
2. Gross Income and Exclusions.
3. Business Income and Expenses, Part I.
4. Business Income and Expenses, Part II.
5. Itemized Deductions and Other Incentives.
6. Credits and Special Taxes.
7. Accounting Periods and Methods and Depreciation.
8. Capital Gains and Losses.
9. Withholding, Estimated Payments, and Payroll Taxes.
10. Partnership Taxation.
11. The Corporate Income Tax.
12. Tax Administration and Tax Planning.
Appendix A: Tax Rate Schedules and Tax Tables.
Appendix B: Earned Income Credit Table.
Appendix C: Withholding Tables.
Appendix D: Additional Comprehensive Tax Return Problems.
Appendix E: Solutions to Self-Study Problems.
Glossary of Tax Terms.
Index.
List of Forms.
List of Schedules.

Test Bank for Taxation of Business Entities 2020 11th Edition By Spilker

Chapter 1   Business Income, Deductions, and Accounting Methods  1) The Internal Revenue Code authorizes deductions for trade or business activities if the expenditure is "ordinary and necessary." Answer:  TRUE Difficulty: 1 Easy Topic:  Business Deductions Learning Objective:  01-01 Identify common business deductions. Bloom's:  Remember AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 2) Business activities are distinguished from personal activities in that business activities are motivated by the pursuit of profits. Answer:  TRUE Difficulty: 1 Easy Topic:  Business Deductions Learning Objective:  01-01 Identify common business deductions. Bloom's:  Remember AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 3) The phase "ordinary and necessary" has been defined to mean that an expense must be essential and indispensable to the conduct of a business. Answer:  FALSE Explanation:  A necessary expense is an expense that is helpful or conducive to the business activity. Difficulty: 2 Medium Topic:  Business Deductions Learning Objective:  01-01 Identify common business deductions. Bloom's:  Analyze AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 4) Reasonable in amount means that expenditures can be exorbitant as long as the activity is motivated by profit. Answer:  FALSE Difficulty: 2 Medium Topic:  Business Deductions Learning Objective:  01-01 Identify common business deductions. Bloom's:  Analyze AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 5) The test for whether an expenditure is reasonable in amount is whether the expenditure was for an "arm's length" amount. Answer:  TRUE Difficulty: 2 Medium Topic:  Business Deductions Learning Objective:  01-01 Identify common business deductions. Bloom's:  Remember AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 6) Illegal bribes and kickbacks are not deductible as business expenses but fines imposed by a governmental unit are deductible as long as the fines are incurred in the ordinary course of business. Answer:  FALSE Explanation:  No deductions are allowed for expenditures that are against public policy. Difficulty: 2 Medium Topic:  Limitations on Business Deductions Learning Objective:  01-02 Determine the limits on deducting business expenses. Bloom's:  Understand AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 7) Although expenses associated with illegal activities are not deductible, political contributions can be deducted as long as the donation is not made to a candidate for public office. Answer:  FALSE Difficulty: 1 Easy Topic:  Limitations on Business Deductions Learning Objective:  01-02 Determine the limits on deducting business expenses. Bloom's:  Remember AACSB:  Reflective Thinking AICPA:  BB Critical Thinking 8) When a taxpayer borrows money and invests the loan proceeds in municipal bonds, the interest paid by the taxpayer on the debt will not be deductible. Answer:  TRUE Difficulty: 2 Medium Topic:  Limitations on Business Deductions Learning Objective:  01-02 Determine the limits on deducting business expenses. Bloom's:  Remember AACSB:  Reflective Thinking AICPA:  BB Critical Thinking

Solution Manual for South Western Federal Taxation 2019 Corporations Partnerships Estates and Trusts 42nd Edition by Raabe

CHAPTER 1 UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Federal Taxation 2019 Corporations Partnerships Estates and Trusts SOLUTIONS TO PROBLEM MATERIALS DISCUSSION QUESTIONS 1. (LO 1) When enacting tax legislation, Congress often is guided by the concept of revenue neutrality so that any changes neither increase nor decrease the net revenues raised under the prior rules. Revenue neutrality does not mean that any one taxpayer’s tax liability remains the same. Since this liability depends on the circumstances involved, one taxpayer’s increased tax liability could be another’s tax saving. Revenue-neutral tax reform does not reduce deficits, but at least it does not aggravate the problem. 2. (LO 2) Economic, social, equity, and political factors play a significant role in the formulation of tax laws. Furthermore, the IRS and the courts have had impacts on the evolution of tax laws. For example, control of the economy has been an important economic consideration in passing a number of laws (e.g., rapid depreciation, changes in tax rates). 3. (LO 2) The tax law encourages technological progress by allowing immediate (or accelerated) deductions and tax credits for research and development expenditures. 4. (LO 2) Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion. For example, the tax laws provide incentives to encourage savings by giving private retirement plans preferential treatment. 5. (LO 2) a. Section 1244 allows ordinary loss treatment on the worthlessness of small business corporation stock. Since such stock normally would be a capital asset, the operation of § 1244 converts a less desirable capital loss into a more attractive ordinary loss. Such tax treatment was designed to aid small businesses in raising needed capital through the issuance of stock. b. The S corporation election allows the profits (or losses) of the corporation to flow through to its individual shareholders (avoiding the corporate income tax). In addition, the qualified business income deduction will apply to any flow-through profits (allowing a maximum 20% deduction to the shareholders). However, with the corporate tax rate being 21% (and individual marginal tax rates potentially being higher), individuals will need to compare the benefits of avoiding the corporate tax rate with the taxes on any S corporation flow-through profits. 6. (LO 2) Reasonable persons can, and often do, disagree about what is fair or unfair. In the tax area, moreover, equity is generally tied to a particular taxpayer’s personal situation. For example, one equity difference relates to how a business is organized (i.e., partnership versus corporation). Two businesses may be equal in size, similarly situated, and competitors in the production of goods or services, but they may not be comparably treated under the tax law if one is a partnership and the other is a corporation. The corporation is subject to a separate Federal income tax of 21%; the partnership is not. The tax law can and does make a distinction between these business forms. Equity, then, is not what appears fair or unfair to any one taxpayer or group of taxpayers. Equity is, instead, what the tax law recognizes. 1-2 2019 Corporations Volume/Solutions Manual © 2019 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7. (LO 2) This deduction can be explained by social considerations. The deduction shifts some of the financial and administrative burden of socially desirable programs from the public (the government) sector to the private (the citizens) sector. 8. (LO 2) Preferential treatment of private retirement plans encourages saving. Not only are contributions to Keogh (H.R. 10) plans and certain Individual Retirement Plans (IRA) deductible, but income from these contributions accumulates on a tax-free basis. 9. (LO 2) The availability of percentage depletion on the extraction and sale of oil and gas and specified mineral deposits and a write-off (rather than capitalization) of certain exploration costs encourage the development of natural resources. 10. (LO 2) Favorable treatment of corporate reorganizations provides an economic benefit. By allowing corporations to combine and split without adverse consequences, corporations are in a position to reduce their taxes and possibly more effectively compete with other businesses (both nationally and internationally). 11. (LO 2) Although the major objective of the Federal tax law is the raising of revenue, other considerations explain many provisions. In particular, economic, social, equity, and political factors play a significant role. Added to these factors is the impact the Treasury Department, the Internal Revenue Service, and the courts have had and will continue to have on the evolution of Federal tax law. 12. (LO 2) The deduction allowed for Federal income tax purposes for state and local income taxes is not designed to neutralize the effect of multiple taxation on the same income. At most, this deduction provides only partial relief. The $10,000 overall limitation on state and local taxes (effective in 2018) also reduces the tax benefit of these taxes. Only allowing a full tax credit would achieve complete neutrality. a. With the standard deduction, a taxpayer is, indirectly, obtaining the benefit of a deduction for any state or local income taxes he or she may have paid. The standard deduction is in lieu of itemized deductions, which include any allowed deductions for state and local income taxes. b. If the taxpayer is in the 10% tax bracket, $1 of a deduction for state or local taxes would save $.10 of Federal income tax liability. In the 32% tax bracket, the saving becomes $.32. The deduction approach (as opposed to the allowance of a credit) favors high-bracket taxpayers. 13. (LO 2) Under the general rule, a transfer of a partnership’s assets to a new corporation could result in a taxable gain. However, if certain conditions are met, § 351 postpones the recognition of any gain (or loss) on the transfer of property by Heather to a controlled corporation. The wherewithal to pay concept recognizes the inequity of taxing a transaction when Heather lacks the means with which to pay any tax. Besides, Heather’s economic position would not change significantly should the transfer occur. Heather owned the assets before the transfer and still would own the assets after a transfer to a controlled corporation. 14. (LO 2) Yes, once incorporated, the business may be subject to the Federal corporate income tax. However, the 21% corporate tax rate might be lower than Heather’s individual tax rates, especially if dividends are not paid to Heather. The corporate income tax could be avoided altogether by electing to be an S corporation. An S corporation is generally not taxed at the corporate level; instead, the income flows through the corporate veil and is taxed at the shareholder level. An S election allows a business to operate as a corporation but be taxed like a partnership. With a partnership, there is no double tax. Income and expenses flow through to the partners and are taxed at the partner level.

SOLUTIONS MANUAL FOR FUNDAMENTALS OF TAXATION 2019 12TH EDITION CRUZ

 
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Fundamentals of Taxation 2019 12/E Cruz 2019 SOLUTIONS MANUAL

Authors: Cruz, Deschamps, Niswander, Prendergast, Schisler ISBN: 1259917088 | 9781259917080
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