Questions from Federal Taxation

Q: John McPherson is single, an attorney, and a U.

John McPherson is single, an attorney, and a U.S. citizen. He recently attended a seminar where he learned he could give up his U.S. citizenship, move to Bermuda (where he would pay no income tax), an...

Q: Continue with the facts of Problem 44. What are the Federal

Continue with the facts of Problem 44. What are the Federal income tax withholding requirements with respect to Martinho’s sale? Who pays the withheld amount to the U.S. Treasury? Facts from Problem...

Q: What is the purpose of the three rules that implement the economic

What is the purpose of the three rules that implement the economic effect test?

Q: Complete the following chart by indicating whether each item is true or

Complete the following chart by indicating whether each item is true or false. Explain your answers by referencing the overlap of rules appearing in Federal and most state income tax laws.

Q: List some general guidelines that a taxpayer can use to determine whether

List some general guidelines that a taxpayer can use to determine whether it has an obligation to file an income tax return with a particular state. (Include the terms nexus and domicile in your answe...

Q: Assume the same facts as in Problem 51. Assume that Burgundy

Assume the same facts as in Problem 51. Assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2018, and the LLC’s taxable income for 2017 and 2018 (aft...

Q: Josie is a sales representative for Talk2Me, a communications retailer based

Josie is a sales representative for Talk2Me, a communications retailer based in Fort Smith, Arkansas. Josie’s sales territory is Oklahoma, and she regularly takes day trips to Tulsa to meet with custo...

Q: Continue with the facts of Question 4. CheapPhones, one of

Continue with the facts of Question 4. CheapPhones, one of Josie’s customers who is facing tight cash flow problems, wants to return about 100 defective cell phones. Talk2Me tells Josie to bring the p...

Q: Hosha exchanges all of her Leaf stock for Petal stock plus $

Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant to a tax-free reorganization. Hosha paid $25,000 for the Leaf stock five years ago. The Petal stock rec...

Q: Indicate whether each of the following items should be allocated or apportioned

Indicate whether each of the following items should be allocated or apportioned by the taxpayer in computing state corporate taxable income. Assume that the state follows the general rules of UDITPA....