Question: Nancy and her daughter Kathleen have been working together in
Nancy and her daughter, Kathleen, have been working together in a cattery called "The Perfect Cat." Nancy formed the business in 1999 as a sole proprietorship, and it has been very successful. Assets have a fair market value of $450,000 and a basis of $180,000. On the advice of their tax accountant, Nancy decides to incorporate "The Perfect Cat." Because of Kathleen's participation, Nancy would like her to receive shares in the corporation. What are the relevant tax issues?
Answer to relevant QuestionsEarly in the year, Charles, Lane, and Tami form the Harrier Corporation for the express purpose of developing a shopping center. All parties are experienced contractors, and they transfer various business assets (e.g., ...Emily Patrick (36 Paradise Road, Northampton, MA 01060) formed Teal Corpo ration a number of years ago with an investment of $200,000 of cash, for which she received $20,000 in stock and $180,000 in bonds bearing interest of ...Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M–1 for 2014: Net income per books (after-tax)........ $257,950 Federal income tax per ...Sarah incorporates her small business but does not transfer the machinery and equipment used by the business to the corporation. Instead, the machinery and equipment are leased to the corporation for an annual rent. What tax ...Green Corporation (a calendar year taxpayer) had a deficit in accumulated E & P of $250,000 at the beginning of the current year. Its net profit for the period January 1 through July 30 was $300,000, but its E & P for the ...
Post your question