Tax Questions about corporations and partnerships

All should be answered true or false. (1) An S corporation shareholder's stock basis is increased by that shareholder's share of corporate profits, but not by a share of increases in corporate liabilities. (2) The general objective of the tax on unrelated business income is to tax such income as if the entity were a corporation. (3) An effective way for all regular (C) corporations to avoid double taxation is not to make dividend distributions. (4) A partner's basis for a partnership interest is increased by that partner's share of profits, whereas a shareholder's stock basis in a regular (C) corporation is not affected by the amount of retained corporate profits.

Tax Questions

Are these true or false? (1) A state cannot levy a tax on a business unless the business was incorporated in the state. (2) A person who died on December 31, 2005, may pay more estate tax than one, similarly situated, who died on January 1, 2006. (3) Even if no gift tax is due, a Federal gift tax return may need to be filed. (4) Under some circumstances, the Federal gift tax may be imposed on the done. (5) An inheritance tax is a tax on the right of a decedent to pass property at death. (6) The Federal gift and estate taxes are imposed on the value of the assets transferred gratuitously during life or at death. (7) Sometimes also known as transaction taxes, Federal gif... click for more

Business Taxation Questions.

For a limited liability company with four owners, A. An election can be made to be taxed as an S corporation. B. The entity is taxed as a corporation. C. An election can be made to be taxed as a partnership. D. None of the above. E. All of the above. I know that they would normally be taxed as a partnership so that makes this questions somewhat confusing. Could someone clarify? ========================= Which of the following is not immune from state income taxation, even if P.L. 86-272 is in effect? A. Sale of a factory building. B. Sale of office equipment that constitutes inventory to the purchaser. C. Sale of office equipment to be used in the taxpayer's business. ... click for more

Taxation- Gift

In which, if any, of the following independent situations has Geraldine made a gift? A. Geraldine gives her 19-year old son $20,000 to be used by him for his college expenses. B. Geraldine buys her grandfather a new Jaguar for his birthday. C. Geraldine sends $20,000 to Duke University to cover her nephew's tuition. The nephew does not qualify as Geraldine's dependent. D. Geraldine contributes $10,000 to her Congressman's reelection campaign. E. None of the above.

Taxation - PL 86-272

Which of the following is not immune from state income taxation, even if P.L. 86-272 is in effect? A. Sale of a factory building. B. Sale of office equipment that constitutes inventory to the purchaser. C. Sale of office equipment to be used in the taxpayer's business. D. All of the above are protected by P.L. 86-272 immunity provisions.