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If Bob chooses S corporations over a regular corporation, at the end of the year he wouldhave at least 60% more income after taxes.B. Justify your recommendation regarding the client’s daughter having an ownershipinterest. Provide details supporting the recommendation taking into consideration thejargon and mechanics of the transaction. The 26 US Code § 1361 (c) (1) states that all members of a family and their estate will betreated as one shareholder for purposes of the 100 shareholders limitation. It definesmembers of a family as common ancestors, any lineal descendant of such commonancestor, and any spouse or former spouse of such common ancestor or any such linealdescendant. Section 403(b) of the 2005 Act eliminated the requirement of an election inorder for a family to be treated as one shareholder, allowing that all members of a familybe treated as one shareholder for purposes of the 100 shareholders limitation. Now that we know that Bob’s daughter qualifies to have an interest in the business, allwhich is left to do is to issue shares in proportion to the amount she will be contributingto the business. Bob’s and his daughter’s ownership interest percentage will bedetermined by the total contribution they made towards the business.
Milestone Four: Tax FormsIII.AppendixA. Prepare the appropriate page of Form 1040 and include the sale of the client’s land onthe appropriate tax schedule and form for the recommended business entity. Be certain tocomplete each tax schedule and form accurately and completely. 01 FORM 1120S.pdf02 FORM 2553.pdf03 FORM 1125E.pdf04 Schedule K-1.pdfB. Prepare the appropriate schedule and tax forms to reflect taxable income based onyour calculations and the disposition of asset. Be certain to complete each tax scheduleand form accurately and completely. 05 1040 FORM.pdf06 SCHEDULE B.pdf07 SHEDULE D.pdf08 SCHEDULE E.pdfC. Illustrate how creative problem solving and versatility of thought impact professionaladvice that you intended to result in the best economic solutions for the client. Considerproviding real-world examples to support your claims.
We, as professional advisors, define our client’s needs. In order to satisfy those needs, weresearch all possible solutions and present them with an action plan detailing all theoptions they have available. Within the action plan, we state which option is the best andwe specify the reasons as to why we believe that specific option is the best for theirneeds. Then fun part is that every single situation is unique. This enables us to learn fromeach client and improves our confidence in satisfying the needs of the next client.