How do such judicial doctrines as the economic substance, substance over form, and business purpose doctrines affect taxpayer behavior? Is it socially beneficial to have such doctrines?
Answer to relevant QuestionsWhat incentives exist for taxpayers to shift income from one party to another? Are there costs associated with such income shifting? Give examples of such costs in a family planning situation. How would the elimination of ...The taxpayer is the sole owner employee of a small corporation that prepares tax returns. Before paying himself any salary or dividends or taking fringe benefits, the corporation has taxable income of $ 100,000. Summarize ...A taxpayer is forming a new corporation and has $ 500,000 to invest in her company. Following the advice of her tax consultant, the taxpayer designated $ 300,000 for the purchase of corporate stock and $ 200,000 as a loan to ...Under what circumstances is an investment that is taxed each period at capital gains rates preferred to an SPDA contract (taxed at ordinary rates on investment income but only at the point of liquidation)? When is Savings ...Many taxpayers who elected to convert the funds in their traditional deductible IRAs to Roth IRAs in the summer of 1998 converted back to traditional IRAs in September 1998 after the stock market fell (the Dow Jones ...
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