Questions On Tax File Memorandum

regards to CC in sales/ use tax area. Here there might have been DP rationale, but no

NOL and capital loss carryovers are deductible in calculating the charitable contribution limit modified taxable income, while NOL and capital loss carrybacks are not.
True

Write an APA-formatted response of no more than 200 words for each the following questions:

Note: (1) The building is subject to a nonrecourse liability of $10,000, which is assumed by the partnership.

John and Janet Baker are husband and wife and maintain a household of 7, including Janet and John. Calvin and Florence Carter are Janet’s parents, who are retired. During the year, they received $19,000 in nontaxable funds (disability income, interest on municipal bonds and Social Security benefits) from which $8,000 was equally spent between them on clothing, transportation, and recreation. The remaining $11,000 was invested in tax-exempt securities. Janet Baker paid $1,000 for her mother’s dental work and $1,200 premium on her father’s own life insurance policy. Janet’s father,

Adrian is a salesperson who represents several wholesale companies. On January 2, 2008, she received by mail a commission check from Ace Distributors in the amount of $10,000 that was dated December 31, 2007. Adrian is concerned about the year in which the amount of $10,000 is taxable. Although the check is dated 2007, she contends that it would have been unreasonable for her to drive 100 miles (one way) to the Ace offices on the eve of a holiday to collect her check. Further, Adrian maintains that even if she had made the trip to collect the check, by the time she returned home, the bank would have closed and she could not have deposited the check until January.

Married Filing Jointly would be the most beneficial for this couple because it will allow them to stay at a lower tax bracket and also qualify to take a higher standard deduction and higher deduction on the sale of their home than they would as individuals.

Kathy and Brett Ouray were married in 1996. In 2014, they consider themselves completely estranged. Due to financial reasons they have decided to not get a divorce or live separately. They also do not have any legal documentation of separation and neither of them has lived outside the home for a significant amount of time. They currently reside together with their three children. They have decided that Brett has contributed more to the upkeep of their home and children than Kathy. They have also decided to file separately. Brett believes he is eligible to file for head-of-household.

1. All distributions (excluding reasonable salary) to Paula and Mary will be taxed as dividends to them. And the corporation could not deduct this part of distribution.

In this report, I will explain the requirements needed to receive an associate’s degree and a

. (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses? (Points : 2)

If my insurance company sent a letter stating that my policy is now a MEC, I would be facing permanent tax consequences on this policy, as “once a MEC always a MEC.” The insurance company would have determined that the policy meets the Internal Revenue Code 7702A. This would mean that the contract was entered into on or after June 20, 1988, failed to meet the seven-pay test, or the policy was received in exchange for a MEC. Withdrawals, loans, or use as collateral result in immediate taxation of all or a portion of policy gains. Distributions are treated in the LIFO method, coming first from income on the policy and the amount of policy gains, and included in gross income, and taxed at the regular income-tax rate and if I am younger than 59½, subject to a 10% penalty tax.