Required information[The following information applies to the questions displayed below]Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is notcurrently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $106,000 taxbasis in his LLC interest that includes his $90,000 share of Sierra Vista's general liabilities. By the end of the year, Farell'sshare of Sierra Vista's general liabilities have increased to $106,000. Because of the time he spends in other endeavors,Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $141,000. As a partnerin the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $14,000. Farell is single and has noother sources of business income or loss.Note: Leave no answer blank. Enter zero if applicable.d. Assuming the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $276,000 lossfrom a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1Loss deductible

As per IRC, section 461(l), deals with the excess business loss deduction or limitation. There is a…

Answered: Required information [The following…

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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! Required information [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $126,000 tax basis in his LLC interest that includes his $115,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $126,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $153,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $7,000. Farell is single and has no other sources of business income or loss. Note: Leave no answer blank. Enter zero if applicable. d. Assuming the original facts and that Farell is deemed…
Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation. Nick has a $500,000 stock basis as of January 1, 2019. During 2019, Go Travel had a taxable income of $100,000. At the end of 2019, Go Travel distributes equipment FMV $400,000, basis $300,000 to Nick. What is the taxable income for Nick for 2019? _________________ What is his stock basis at the end of 2019? __________________ What is his basis in the equipment at the end of 2019? _______________ Which of the following events would not terminate the S election? Nick sells some of his stock to Dome Partnership. Nick sells some of his stock to a non-resident alien. Go Travel, Inc. sells newly authorized preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. Nick consents to have the S election voluntarily revoked. Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.
! Required information [The following information applies to the questions displayed below.] Danni is a single 30 percent owner of Kolt (a business entity). In the current year, Kolt reported a $1,000,000 business loss. Answer the following questions associated with each of the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.) c. Kolt is organized as an LLC taxed as a partnership. Thirty percent of Kolt's loss is allocated to Danni. Danni is not involved in Kolt business activities. Consequently, she is considered to be a passive investor in Kolt. Danni has a $400,000 basis in her Kolt ownership interest, and she also has a $400,000 at-risk amount in her investment in Kolt. Danni does not report income or loss from any other business activity investments. How much of the $300,000 loss allocated to her from Kolt is Danni allowed to deduct this year? Allowable deduction of loss
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Required information [The following information applies to the questions displayed below.] Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $324,000 of business income for the year (2022). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiyara's adjusted gross income was $274,000 (all employee salary). Kiyara has $41,200 in itemized deductions. Answer the following questions for Kiyara. Note: Leave no answer blank. Enter zero if applicable. d. What is Kiyara's additional Medicare tax liability (include all earned income in computing the tax)? Additional Medicare tax liability
Required information Problem 04-46 (LO 04-3) (Algo) [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $192,500 salary working full time for Angels Corporation. Angels Corporation reported $450,000 of taxable business income for the year (2023). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $192,500 (all salary from Angels Corporation). Mason claims $75,000 in itemized deductions. Answer the following questions for Mason. Note: Leave no answer blank. Enter zero if applicable. Problem 04-46 Part b (Algo) b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction. X Answer is complete but not entirely correct.…
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Required information [The following information applies to the questions displayed below.] Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $300,000 of business income for the year (2023). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiyara's adjusted gross income was $250,000 (all employee salary). Kiyara has $40,000 in itemized deductions. Answer the following questions for Kiyara. Note: Leave no answer blank. Enter zero if applicable. a. What is Kiyara's self-employment tax liability? Answer is complete and correct. Self-employment tax liability $ 0
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