23) Darian is a 50% owner of $200,000 business loss Darian works full time as an emp basis and at-risk basis in his LNS stock. Darian reports $20,000 of income from another business activity in which he is a passive investor. How much of LNS Corporation's loss is Darian allowed to deduct this year against his other income? A) $0

23) Darian is a 50% owner of $200,000 business loss Darian works full time as an emp basis and at-risk basis in his LNS stock. Darian reports $20,000 of income from another business activity in which he is a passive investor. How much of LNS Corporation's loss is Darian allowed to deduct this year against his other income? A) $0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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V6. Sean Grey acquired a 30% interest in Beau Grey Productions, LLC several years ago for $48,000. He does not materially participate in the business. At the beginning of 2021, Sean has a tax basis in his LLC interest of $20,000. In 2021, Beau Grey incurred a loss of $180,000 and did not make any distributions to its members. Compute the loss from Beau Grey which Sean can deduct on his return for 2021 assuming that he has rental property from which he has net income of $8,500.
Morris a single taxpayer earns wages of $350,000. In tax year 2021 he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ( 270,000 dollar loss). Boris has enough tax basis to cover the loss as and is considered at risk for the loss amount and he materially participates in the activity. What is the amount of excess business loss he will carry forward $10,000 $80,000 $260,000 $270,000
vi.9
W has a zero basis in his stock investment with Y Corporation, a C corporation. During the year, W receives a $50,000 cash distribution. His share of the current-year earnings and profits is a negative $30,000 and his share of the beginning-of-year accumulated earnings and profits is a negative $10,000. How does W treat the $50,000 distribution? Taxable dividend income Capital gain Nontaxable return of capital Part nontaxable return of capital and part capital gain
18. Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporation’s stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation’s stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) FMV Adjusted Tax Basis Building $ 75,000 $ 20,000 Land 175,000 80,000 Total $ 250,000 $ 100,000 To equalize the exchange, Wizard Corporation paid Hermione $50,000 in addition to her stock. What is Hermione’s tax basis in the stock she receives in return for her contribution of property to the corporation?
19. Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporation’s stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation’s stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) FMV Adjusted Tax Basis Building $ 75,000 $ 20,000 Land 175,000 80,000 Total $ 250,000 $ 100,000 To equalize the exchange, Wizard Corporation paid Hermione $50,000 in addition to her stock. What adjusted tax basis does Wizard Corporation take in the land and building received from Hermione? Adjusted tax basis land and building?
Jacob and Joria are married and file a joint return. They have the following items for the current year: Salaries $345,000 Loss on sale of § 1244 stock acquired 15 years ago 136,000 Gain on sale of § 1244 stock acquired ten months ago 44,000 Nonbusiness bad debt 12,000 Business bad debt 23,000 Determine their AGI for the current year. S-------
VI.7
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
Question. Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in the LLC as compensation. Winterhaven currently has $43,000 of accounts payable and no other debt. The current fair market value of Winterhaven's capital is $270,000. (Leave no answer blank. Enter zero if applicable.) a. If Connie receives a 5 percent capital interest only, how much income must she report and what is her tax basis in the LLC interest? Income Tax Basis b. If Connie receives a 5 percent profits interest only, how much income must she report and what is her tax basis in the LLC interest? Income Tax Basis c. If Connie receives a 5 percent capital and profits interest, how much income must she report and what is her tax basis in the LLC interest? Income Tax Basis
Connie recently provided legal services to the Winterhaven LLC and received a 20 percent interest in the LLC as compensation. Winterhaven currently has $50,000 of accounts payable and no other debt. The current fair market value of Winterhaven’s capital is $200,000. If Connie receives a 20 percent profits interest only, how much income must she report?