Summary: The Tax Planning Activities

Now that we have converted the sole proprietorship to a s-corporation, the tax planning and strategic planning must be the next topic to address. Since Mr. Jones does not have a spouse, he must consider Mandy as the heir to business and his estate. The Current value of his estate is 53 million dollars. He currently wants his daughter to control 40% of the business and be employed by the business. This memo will discuss the following topics: tax planning, strategic planning, estate planning, transfer of assets and selling the business.

period to complete each in-class quiz. Each quiz will be graded based on 50 points.

The pool cost the petitioner over $19,000, and we cannot accept his contention that such amount was spent primarily for therapy for his leg in view of the limited need for such therapy and the alternatives which were then available.

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

Ann paid $500 for her books and supplies and she incurred living expenses of $7,400.

6. How does the Privacy Act differ from FOIA, and when would a taxpayer request information under the Privacy Act rather than under FOIA?

In the article “Job One: Tax Code Rewrite,” William O’Keefe, an author who cares about tax reform, argues that the Obama Administration should rewrite the tax code in order to reduce the unemployment rate. He supports this claim with a formal tone by using opinions and anecdotes as evidence. According to William, we need “systematic reforms to our tax code and regulatory policy.” The author targets a tax reform audience that cares about the economy. William’s purpose is to persuade readers that Obama’s stimulus tax bill will not help the economy or business in the long run. This work is significant because it challenges the Obama Administration to rethink their priorities.

You are legally married to Mary Dewey and reside in the same abode. Both you and Mary file your income tax returns jointly as married. You and Mary are anticipating an approximate Adjusted Gross Income (AGI) of $400,000 this year. In your same abode, you have two children in residence; Debra, who is currently 16 years of

Peaceful Pastures Funeral Home Inc. is an accrual basis taxpayer who sells prepaid goods and services to clients that will be provided for them at the time of their death. Goods and services are refundable upon the purchasers request at any time until the contracts are fulfilled. Peaceful Pastures Funeral Home Incorporated is in need of determining the period of recognition for income provide from a prepaid service for which they are an accrual basis taxpayer.

1. For the Tax year 2004, is SK eligible to switch from the accrual to cash method of accounting under Rev. Proc. 2001-10?

If Dr. Green 's gambling activities do not qualify as a trade or business, can he deduct his gambling-related travel and lodging expenses against his gambling winnings?

Tiebreaker rules: If a child is claimed as a qualifying child by two or more taxpayers in a given year, the child will be the qualifying child of:

Megan Cluey, aged 22, arrived in Australia on 12 October 2010 to take up permanent residence. Three months

On July 18, the Federal Government announced their intention to restrict certain tax planning strategies available to shareholders of private corporations that they felt unfairly benefit business owners over salary-earning Canadians. The consultation period during which stakeholders were allowed to provide comments on the proposals ended on October 2, 2017. Ottawa’s original proposals were met with widespread criticism from the business community. As a result, during Small Business Week, October 16 - 20, some revisions were announced. The below summarizes the original proposals as well as where we currently stand.

KPMG was one of the biggest accounting firms in the 90’s that with a lucrative end, would serve wealthy companies using forged revenues in order to avoid taxes. The accountants that worked for the firm were expected to meet certain quotas. Consequently, instead of trying to run an honest business they were trying to maximize the sales using all kinds of dishonest marketing approaches. KPMG employees used foreign banks as well as bogus law firm statements to preserve a legitimate business running. This accounting firm manipulated financial data of clients, costing the internal revenue service over 2.5 billion in lost tax revenue