which of the following is not a "relative" under the constructive ownership rules?
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which of the following is not a "relative" under the constructive ownership rules? A. 60 percent owned corporation. B. A sister. C. A
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- Which of the following is not part of decedent’s interest for estate tax purposes? A. Income that have accrued after the death of the decedent.B. Partnership profits that have accrued before the death of partner.C. Proceeds of life insurance policy payable to a revocable beneficiary.D. Dividends declared by a corporation before death of stockholder although paid after death, if thedecedent was living on the record date.Which of the following statements regarding income recognition is true? A. Owners in a regular corporation realize entity level income at the time the income is earned. B. Owners of an S corporation realize entity level income in the tax year in which the S corporation's year ends. C. Partnership income is recognized in the year in which it is distributed to the partners. D. Sole proprietorship income is recognized at the time the income is distributed to the owner.Which of the following are nontax characteristics of a qualified terminable interest property (QTIP) trust? The income may go to multiple beneficiaries. The donor or decedent's executor qualifies the trust assets for the marital deduction by making a timely election The principal of the trust is paid to the surviving spouse's estate if the election to qualify the assets for the marital deduction was not made upon creation of the trust. The grantor of the trust determines who receives the remainder interest in the trust assets. A)II, III, and IV B)I and III C)IV only D)II and IV
- Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.Which of the following are interests that must go through probate? A residence that goes to the decedent's spouse and children according to the intestate succession statute Shares of stock bequested to the decedent's brother A bond that is community property, which passes to the surviving spouse Life insurance proceeds payable to the decedent's spouse A) I and IV B) I, II, and III C) II only D) II and IIIGive typing answer with explanation and conclusion
- Please do not give solution in image format ?Partnership(taxation) Assume that all partnership interests expressed as percentages are those percentages of both profits/losses and capital. Assume that all liabilities are recourse. a) Three individuals, C, D, and E, form CDE LLC. CDE LLC does not "check the box" to become a corporation and therefore is treated as a partnership for tax purposes. C contributes land, AB 70 FMV 100 and cash of 20. D contributes inventory (in the hands of both D and CDE), AB 50 FMV 120. E contributes services. In exchange, each partner receives a 1/3 interest in the LLC. What are the consequences to all of the parties? (b) Same as (a) except that C's land is subject to an assumable mortgage of 30 and has a FMV of 130Louie P 325,000 117,000 25,000 12,000 15,000 10,000 Floyd P 380 0 105 0 20.000 8290 Personal Income/Expenses of the heirs: Gross Income Deductible expenses Dividend from domestic corporation Dividend from foreign corporation Prize, supermarket raffle Royalty, books 18.000 MU 1. Additional Information: without dependent children. Required: Determine the following: 1. Income tax payable of the estate 2. Income tax payable of Louie 3. Income tax payable of Floyd P4.3. (Trust) favor of Pedro. The following data were provided: Gross income of the trust Deductible business expenses of the trust Income distributed to Pedro during the year Dividend income from domestic corporation Dividend income from resident foreign corporation Interest income from U.S. $ deposits Interest income from peso deposits P3,000,000 1,800,000 200,000 100,000 100,000 200,000 100,000 Personal Income and Expenses of Pedro Compensation income Rental income (net) Rental expenses Royalty income, books Other royalty…
- All the following are exampies of non-taxable income, except Select one O a. Proceeds received as beneficiary of a life insurance contract due to the death of the insured O b. income from illegal activities OC Shares of stock received as an inheritance O d. Cash received as a gift Oe All of these are non-taxable1. Total amount of the exclusive property of the decedent under Absolute Community of Property regime 2. Total amount of the common properties of the spouses under the Conjugal Partnership of Gains regime1.Where a partnership records a loss for an income year for tax purposes: (Choose the most correct option) a. It will be carried forward and allowed as a deduction from future income of the partnership. b. It is only transferred to the individual partner’s tax calculation as an allowable deduction for that partner's share if the individual partner has assessable income. c. It is transferred to the individual partner’s tax calculation as an allowable deduction and if the individual partner does not have assessable income sufficient to absorb the loss the individual partner can carry forward the loss or part of the loss to future years. d. It will be of no significance for tax purposes because it cannot be used by the partnership under tax legislation. 2. Which statement below best describes the entities that can accept donations from the public and provide donors with documentation to allow them to claim a tax deduction in respect of their…
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