4.What is the purpose of encipher Sec. 351 in regard to transfers to senss?
Sec. 352 defines the transfer corporeal cable. 1) requires that the transferor take ins corporate stock, 2) receipt of anything else is boot, 3) common, preferred stock, voting, and non voting stock are acceptable, 4) nonqualified preferred stock is considered boot.
22.What are the differences in the treatment of ceiling take a leaks and not bad(p) losings of corporations and of individuals?
Corporations can claim bully hurtes only a take onst capita gains. Disallowed capital losses can be autoried cover 3 years and forward 5 years. For individuals capital losses are treated as deduction for a loss on dispositions of stock. Gains on sale remains capital gains. Lastly, Code Sec. 1202 allows non-corporate taxpayers to exclude 50 percent on any gain from sale or exchange of small business stock held for more than five years.
Problems (Show your work.): 14-55 and 14-62
55.Susan Sweets is a 40 percent stockholder in Acclaim Inc., a theatrical supplies company. She transfers a to the full depreciated car with a value of $2,000 to the corporation, but does not receive any consideration for it.
a.What are the tax consequences to Susan?
Susan recognizes no gain or lost.
b.What are the tax consequences to the corporation? The car is considered boot. The corporation will have to recognize a gain of $2,000.
c.What, if any, changes if Susan true another 10 percent stock interest for the car? Susan will have to recognize a gain of $2,000.
62.A corporation has income of $62,000 from operations and a net long-term capital loss of $5,000. What is the corporations ratable income for the year?
The corporations taxable income is $62,000. Capital losses are only deductible towards capital gains. They can choose to carry back the losses or forward.If you want to get a full essay, order it on our website: Ordercustompaper.com
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