Lect the best answer. hich of the following statements regarding various entities is true? O D O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited part Partnerships are taxpaying entities, because tax attributes pass through to the individ partnors D.

Lect the best answer. hich of the following statements regarding various entities is true? O D O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited part Partnerships are taxpaying entities, because tax attributes pass through to the individ partnors D.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter11: Investor Losses

Section: Chapter Questions

Problem 6RP

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Select the best answer. Which of the following statements regarding the characteristics of various entities is false? O O B. A general partnership is a pass-through entity. The income of a sole proprietorship is taxed to its owner because it has no separate legal entity from its owner. D. State taxability for S corporations makes no distinction between S and C corporations. A. A C corporation enjoys no special tax status. O C. O Question Q 13 Submit Answers 100% Complete
4. General professional partnerships (GPP) are exempted from taxation because: S1: Partners are liable in their own capacity S2: GPP is a pass-through entity only S3: GPP is not a corporation Which is false? Group of answer choices S3 S2 None are false S1 5. Professional tax collected by Treasurers of local government units is an example of: Group of answer choices Privilege tax Income tax Specific tax Direct tax
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2. Chapter TF, Section .01, Problem 004 Partnerships and proprietorships generally have a tax advantage over corporations. Oa. True Ob. False
Ma1. response to the classmate, Amanda Cain, Partnerships are considered flow-through entities meaning, each partner of the business is responsible to pay taxes on their share of the business’s profit/losses. The amount paid on profit/losses is determined by each partner’s investment share of the business. If the business suffers a loss the partners would each take ownership of the amount on their personal income tax rather thank through the partnership as it is not a taxable entity. The same goes for profits, if the business earns a profit each partner must pay taxes on their share. Basic tax filing requirements of a partnership is 1.) file an information return using Form 1065 annually with the IRS and 2.) each of the partners will be required to file an individual income tax return using Form 1040 in addition to Form 1065. The Form 1065 is used to disclose the business’s income/loss and provide a breakdown of how much each of the partners have earned from their share of profit…
Select the best answer. Which of the following statements is true related to the conversion of a regular corporation to a limited liab company (LLC) taxed as a partnership? OA O O 105 In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporation is not taxed at the corporate level. The corporation can contribute its assets and liabilities into the new LLC in exchange for B. ownership interests. The corporation then distributes the LLC interests to its shareholders in liquidation of the shareholders' corporate stock. O D. If the corporation distributes its assets and liabilities to its shareholders in liquidation of the C. corporation, the shareholders are restricted from contributing these assets into the new partnership. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no tax consequences when converting a C corporation to an LLC. Submit Answers 100% Complete…
Which of the following statements is true? a. S corporations are typically subject to one level of tax at the corporate level. b. Partnerships are typically subject to one level of tax at the partner level. c. LLCs and LLPs must be taxed as C corporations. d. REITs typically pay tax at the entity level. e. All of the above are true.
Question # 1: Which of the following statements is CORRECT? a. One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. b. Sole proprietorships are subject to more regulations than corporations. c. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. d. Sole proprietorships and partnerships generally have a tax advantage over many corporations. e. Corporations of all types are subject to the corporate income tax.
Select the best term for each definition below. Definitions Terms a. Shareholders can lose no more than the amount they invest in the company. b. Corporate earnings are taxed twice—at the corporate level and individual shareholder level. c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation. d. Traces the line of authority within the corporation. e. Allows for legal treatment as a corporation, but tax treatment as a partnership. f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE). g. The first time a corporation issues stock to the public. h. Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.
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19. Which of the following statements is not correct? A. As a rule, co-ownership is not subject to income tax because the activities of the co-owners are limited to the preservation and enjoyment of the property and the collection of the income therefrom. B. All partnerships, no matter how created or organized are considered corporations subject to corporate income tax. C. When the co-owners invest the income of the property co-owned in a business or any income-producing properties or activities constituting themselves into a business partnership, such partnership is consequently subject to tax as a corporation. D. A co-owner is subject to income tax on his share in the net income of the co-ownership actually or constructively received.