Mr. and Mrs. Barnes own a fast-food restaurant that generates $160,000 average annual income. The couple wants to shift some of this income to their two children, ages 19 and 22. Can Mr. and Mrs. Barnes organize their restaurant as a family partnership and give each child a 25 percent interest?
Answer to relevant QuestionsMs. Johnson is eager to create a family partnership to generate income and cash flow for her three college-age children. She owns two businesses, either of which could be organized as a partnership. Ms. Johnson established ...Mrs. Tran and Mrs. Nutter each own a small business that averages $80,000 annual income. Each woman is in the 35 percent marginal tax bracket. Mrs. Tran has decided to incorporate her business as a taxable corporation, while ...Graham is the sole shareholder of Logan Corporation. For the past five years, Logan has reported little or no taxable income, as a result of paying Graham a salary of $500,000 per year. During a recent IRS audit, the revenue ...Refer to the facts in the preceding problem. a. If the business is operated as a partnership, explain the payroll tax/self-employment tax implications for the entity, Thomas, and Angela. (No calculations required.) b. If the ...Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question. WQ Corporation, a closely held family business, has not paid a dividend for the last seven years. Each ...
Post your question