SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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Students have asked these similar questions
Which of the following taxpayers may claim a deduction for qualified business income?
a. A driver for Uber or Lyft.
b. A vetenarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food and supplies and from the boarding of animals.
c. A CPA operating as an LLC taxed as a sole proprietorship. The CPA is single and has taxable income of $150,000.
d. Same as part(c), except the CPA has taxable income of $200,000
e. A real estate salesperson.
f. A pet sitter/ dog walker.
g. A sole proprietor software developer.
h. An individual wage earner who derives $60,000 of rental income from a duplex she owns.
For an accrual basis taxpayer, the all events test is not met until economic performance occurs. Economic performance occurs:
(a.) When a corporation receives its completed tax return from its accountant
(b.) When the employees of self-insured corporation receive medical treatment
(c.) When a corporation purchases a $5 million annuity in settlement of $20 million award to a plaintiff/customer in a production liability lawsuit
(d.) On March 1, when a corporation uses a leased copy machine to make 12,000 copies for the month of March and it must pay $.10 per copy for copies mad in excess 10,000 plus a flat fee of $500/month.
A taxpayer operates a business through a single-member LLC (disregarded for federal tax
purposes). The taxpayer contributes $30,000 cash and equipment worth $50,000 (having an
adjusted basis of $20,000) to the LLC to fund its operations. The LLC obtains a loan from a bank of
$100,000. Because the LLC has no established credit, the taxpayer has to personally guarantee
the loan. What is the taxpayer's amount at risk? O The taxpayer is at risk in the amount of
$30,000. The taxpayer is at risk in the amount of $50,000. O The taxpayer is at risk in the amount
of $80,000. O The taxpayer is at risk in the amount of $150,000.
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