Discuss the tax planning opportunities that are available in forming a corporation when one of the parties owns property that has a high basis and a low FMV.
What will be an ideal response?
The plan should be formulated to allow the contributor to avoid Sec. 351 and be able to recognize the loss. This can be done by having the transferor sell the property to an unrelated party and then have the transferor contribute cash. The transferor must be careful to avoid the related party rules of Sec. 267, which could prevent the loss from being recognized if the property is sold directly to the corporation. Several other suggestions are explored on pages C:2-34 and C:2-35.
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Jackson and Campbell have capital balances of $100,000 and $300,000, respectively. Jackson devotes full time and Campbell one-half time to the business. Determine the division of $150,000 of net income when there is no reference to division in partnership agreement
a. $75,000 and $75,000 b. $37,500 and $112,500 c. $100,000 and $50,000 d. $112,500 and $37,500
In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products
Nestlé and Groupe Danone SA have developed several health-foods which include all of the following except: A) Souvenaid. B) Activa. C) NutriChoice. D) Nutraceuticals. E) Medical Foods.
"Transformation advertising" describes advertising that seeks to change the experience of buying and using a product
Indicate whether the statement is true or false
A question of _____ includes an evaluation of person, event, situation, or action.
a. fact b. value c. policy d. idea