a. using the information above describe the tax classification(s) for Stellar LLC for 2020 prior to Marie being admitted as a new owner from January 1, 2020 to May 31, 2020.

Q: n 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable…

A: Kiddie tax is applicable when the taxpayer's age is less than 18 years old.  Another condition is…

Q: Whitley and Maggie Sweeney are a married couple filing jointly. They have no children and report the…

A: It is a tax system imposed by Congress to collect a minimum amount of income tax for each year from…

Q: Martin is a sole proprietor of a sandwich business. On March 4, 2019, he purchased and placed in…

A: To calculate as low income as possible Martin has 2 choices whether to elect section 179 or not to…

Q: Brad is a shareholder and full-time employee of an S corporation. During 2020, he earns a $50,910…

A: Sec 179 is specially designed by IRS to reduce the tax burden by…

Q: Cindy’s husband Allen dies on March 1, 2021. Cindy and Allen have no children. What is Cindy’s…

A: Surviving spouse benefit is available in case the spouse doesn't marry after two years of the death…

Q: In 2018, Kirk invested $50,000 in a general partnership in which he materially participates (passive…

A: A passive activity is the activity in which the taxpayer did not materially participates for the…

Q: Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different…

A: The passive activity loss limitation is a tax rule that limits the amount of losses that a taxpayer…

Q: To start a business of his own, Mr. dela Rea opted for an early retirement from Plaridel…

A: Taxable income:The taxable income is the amount of income on which IRS imposes tax.Income tax…

Q: In 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable…

A: In this case 7000 $ is an unearned income,and it exceeded 2200 limit.

Q: Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does…

A: The payroll tax includes Social security And Medicare taxes, as well as various income tax…

Q: Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different…

A: b-1. Deductible LossInitial Information Recap:Initial Tax Basis in Sierra Vista LLC: $152,000Share…

Q: Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income…

A: Particulars                                                    $ Withheld in 2019…

Q: Chris Crone (age 67) is married, but will file as married separate. Assume that Chris has one child,…

A: Introduction: The basic income that is subject to taxation is referred to as taxable income. It…

Q: arell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different…

A: Sole Proprietorship: A sole proprietorship, also known as a tradership, entrepreneurship. it is a…

Q: richard and alice are divorced and under the terms of their written divorce agreement signed on…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different…

A: The concept used is the activity participation rule for limitations on business loss deductions.This…

Q: Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD).…

A: Adjusted Gross Income (AGI):  Adjusted gross income is the amount on which the tax liability of the…

Q: consequences of conducting business as a C corporation and the annual income tax savings. Please…

A: Write meaning of cash method and Accrual Method.

Q: In December 2020, Ben and Jeri (married filing jointly) have a long-term capital gain of $55,000 on…

A: Long term capital gain above $ 80000 = 125000 - 80000 = $ 45000

Q: Emily, who is single, has been offered a position as a city landscape consultant. The position pays…

A: Taxable Income- Taxable income a term refers to the base upon which an income tax system imposes…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: W2 wages shall be deducted from business income to arrrve at Gross business income from Just…

Q: Charles Smith won a million dollar lawsuit in 2017 against a pretend doctor. Smith attorney kept…

A: The IRS publications that are applicable in this case are:Publication 525, Taxable and Nontaxable…

Q: Grant filed Articles of Organization in the state of Kansas to form a limited liability company. The…

A: Limited Liability Company (LLC) being a new form of business entity for tax classification purposes…

Q: Jamil, who is single, sold his principal residence on April 10, 2020, and excluded the realized gain…

A: For exclusion of gain on principal residence, there should be 3 condition should be satisfied for…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: Calculation of Taxable income of Dale and Eleanor's in 2021: Paricualrs Amount ($) Amount ($)…

Q: source deductions were excessive and that the individual is entitled to a refund for all three…

A: Tax refund is lost on not filling tax return. Law provides 3 year provision from original due date…

Q: 50,000 by November 30 and will have no other gross income.   In addition, it will have no deductions…

A: The comparison of overall taxes as,

Q: Vikram Bhai

A: The objective of the question is to determine how much of the Sierra Vista loss Farell will be able…

Q: In 2020, Susan (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her…

A: Deductions on account of casualty losses such as theft are deductible if caused by federally…

Q: Hansaben

A: To calculate Farell's total trade or business loss deductible on his return in year 1, we need to…

Q: Rita has an NOL generated in 2020 from farming activity. Which is NOT an option for using the NOL in…

A: NOL means: when the actual income of any company is less than the deduction for that assessment year…

Q: Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return and…

A: It is the tax payable by the taxpayer, who is self-employed. As per the provisions of IRS, the…

Q: Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income…

A: QBI - Qualified Business Income Deduction is an allowed tax deduction which allows eligible sole…

Q: Ethel and Cletus are

A: Standard deduction 2022 (taxes due April 2023)The 2022 standard deduction for tax returns that…

Q: Peter and Lois

A: Generally, alimony or separate maintenance payments are deductible by the payer…