Joe Doe just started a business. He wants the business income to flowdirectly to his own personal tax return, but he wants to make sure that hehas limited liability. What form(s) of business ownership would you recommendfor Joe?

I Have This Question. I need an answer relevant to US Tax Code. 5).        Leno Hardware is owned and operated as a sole proprietorship by Larry Leno. The location is excellent, and he is approached by a buyer, Hard Bargains Inc., a national chain of hardware stores. What are the tax consequences in the following situations? Larry sells the store for cash. Larry sells the store for marketable stock in Hard Bargains. Larry incorporates the store and exchanges the stock for shares in Hard Bargains. Same as (c), but Larry incorporated his hardware store two years earlier. check_circle Expert Answer thumb_up   thumb_down INTRODUCTION When the situation arises to sell your business where the buyers are around the corner, the seller may meet a proper tax bill. Careful computations and transactions are needed while winding up and selling off   the business with responsible tax abiding taxes. The seller will be taxed on the gain or profit he/she make from selling the business.…

You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an S Corporation and needs to be versed on how this type of corporation works. Identify three operating issues (e.g. accounting period, income/loss allocation, operating/liquidating distributions, stock basis calculations, fringe benefit rules) that Cathyrn should be aware of in managing this form of business.

Which one of the following taxpayers is potentially eligible for a qualified business income deduction?  Select all that apply.   Question 25 options:   A shareholder of General Electric   A sole proprietor operating a restaurant   Jennifer, owner of a winery operated as an S corporation   The Red Cross.   Alan, an employee of BigCo.

Whilst looking at the income tax returns applicable to corporate entities, Jackie was curious why there is a need for tax-exempt entities to still file for their ITR given that they are already exempted. Being a lamb to your friend, which of the following would best provide reason for such?   A. for assessment of the correctness of mathematical computations made by taxpayer B. for comparison of figures reported on their financial statements C. for conversion of the supposed tax burden to filing burden D. for possible tax exposures from the conduct of unrelated activities

Taxation for Senior Citizen Wanna is a former chief accountant of SMF Holdings. Due to his old age he retired and subsequently registered as a Senior Citizen to avail the benefits specified in R.A. 9994. Even though he is a former chief accountant, he is not aware of the other benefits that a SC can acquire since it is not within his field of expertise. He approached you to ask what the different benefits are. You asked what his recent purchases are, and his recent bill from Meralco and Maynilad, all are in the Elder’s Name & Residence, he presented to you the following: Meralco Bill - P1,800 for 150 kwh Maynilad Bill - P1,350 for 40 cubic meters   The following were bought by Mr. Wanna from a grocery store 3 days ago: (see picture)   Assuming that all amounts are VAT inclusive, if applicable, & Mr. Wanna did not avail of the SC benefits, how much is the total amount paid if the benefits were exercised?   Include some solutions. thanks

Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.?  Indicate the amount of any income, gain, or loss. What is James’s basis in TOBY, INC. stock? Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.

Sparrow Corporation would like you to review its employee fringe benefits program with regard to the tax consequences of the plan for the company's president (Polly), who is also the majority shareholder. For the following items, indicate what amount, if any, is included in Polly's gross income. If an amount is zero, enter "0".

Assume your client wants to include travel and entertainment expenses in their tax deductions. Explain the type of documentation needed to support your client’s claim for including travel expense as business expense.Provide a circumstance where such a claim could trigger an IRS audit. Make sure you support your argument with clear tax rules and regulations.Your client is claiming the concert tickets he purchased as a business expense.Use your understanding of the tax laws to explain a situation where your client can claim the expense deduction as a business expense and another example where your client cannot.

Valeri is opening a hair salon, but she does not know whatbusiness form it should take. What can you tell her aboutthe advantages and disadvantages of operating as a soleproprietorship versus a corporation?