In each of the following cases, determine who is taxed on the income: a. Camille owns several
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a. Camille owns several rental properties that produce $3,000 in income each month. Because of the age of the properties, Camille is concerned about her potential liability from accidents on the property. On June 1, she forms the CAM Rental Corporation and transfers ownership of the rental properties to the corporation. The tenants continue to pay Camille the monthly rent, which she deposits in her personal
checking account.
b. Jimbob owns royalty interests in several oil wells. On March 1, Jimbob instructs the payers of the royalties to pay half of each royalty payment to his son Joebob.
c. Assume the same facts as in part b, except that on March 1, Jimbob gifts a half interest in each royalty contract to Joebob.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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