Can a sole proprietorship be described as a pass-through entity?
Answer to relevant QuestionsThis year, Soya Partnership disposed of only one operating asset and recognized a $22,000 loss on the disposition. Why must Soya report this net Section 1231 loss as a separately stated item rather than deducting the loss in ...This year, Mr. Pitt’s sole proprietorship generated a $17,000 net loss. Can Mr. Pitt use this loss as an net operating loss carryback deduction? Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in the 39.6 percent tax bracket. Early in the year, Jane hired Ben as a paralegal and paid him a $33,000 salary. a. Compute the ...This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y contributed business assets with a $50,000 FMV. Y’s adjusted basis in these assets was only $10,000. The partnership ...Evan is the sole shareholder of Magic Roofing Company, a calendar year S corporation. Although Evan spends at least 30 hours per week supervising Magic’s employees, he has never drawn a salary from Magic. Magic has been in ...
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