CHAPTER 6: ANSWERS TO HOMEWORK ASSIGNMENT
Brandis redemption satisfied the terms of one of the qualifying stock redemptions
and was taxed as a sale or exchange. That is, $9,000 = 15% (LTCG tax rate) $60,000
LTCG [$100,000 (amount
CHAPTER 10: ANSWERS TO HOMEWORK
Lecture. The inside basis is the partnerships tax basis for the assets it owns. The
outside basis is a given partners tax basis in the partnership interest. On formation of a
partnership, the total of all par
CHAPTER 5: ANSWERS TO HOMEWORK
Taxable income for 2013 is increased by the amount of the capital loss
carryover because the loss reduced E & P in 2012.
Taxable income is reduced by the nondeductible meal expenses.
SPRING 2013: CHAPTER 4: ANSWERS TO QUESTIONS
The control requirement specifies that the person or persons transferring property
to the corporation must own, immediately after the transfer, stock possessing at
least 80% of the total combined voting powe
Chapter 3: Homework Answers
DPAD cannot exceed 50% of W-2 wages.
DPAD is a percentage (3%, 6%, or 90epending on the year involved)
of the lesser of QPAI or TI, but not to exceed 50% of W-2 wages.
DPAD is limited to a percentage of TI
Chapter 2- Spring 2013
Tax Problem Answers
Income, gains, deductions, and losses of a proprietorship are reported on
the individual tax return of the sole proprietor. Consequently, Juanita reports the
$50,000 net operating profit ($320,000 operatin
Chapter 1. Answers to Homework Assignment.
When enacting tax legislation, Congress often is guided by the concept of revenue
neutrality so that any changes neither increase nor decrease the net revenues raised under the
prior rules. Revenue
CHAPTER 2: HOMEWORK ASSIGNMENT
Reading Assignment: The Big Picture, LO 1, LO2 (skip recapture of depreciation and passive
losses,), LO3, LO4 (skip alt min tax), LO5, LO6 (skip schedule M3 and financial accounting