If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a partnership. True or False
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If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a
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- Which of the following may not be treated as a partnership for tax purposes? Arnold and Willis operate a restaurant. Thelma and Louise establish an LLP to operate an accounting practice. Lucy and Desi purchase real estate together as a business. Jennifer and Ben form a corporation to purchase and operate a hardware store. All of the above are partnerships.Jake is a chemist who never has owner real estate. Barney subdivides real estate as his primary business activity. They form a partnership. Two years later, the partnership sells one of its real properties at a gain after extensive marketing efforts. What are the tax consequences to the partners?Is this statement True or False? Pat and Shane are a married couple (filing jointly) and operate a small restaurant together as an unincorporated business. They have never filed any formal paperwork with the state as a business entity. Pat and Shane’s business is a partnership for Federal tax purposes.
- How do two taxpayers determine who has priority to claim the dependency exemption for a qualifying child of both taxpayers when neither taxpayer is a parent of the child (assume the child does not qualify as a qualifying child of either parent)? How do parents determine who gets to deduct the dependency exemption for a qualifying child of both parents when the parents are divorced or file separate returns?Connor is considering investing in a real estate partnership. Exact detail are still unknow, but what question should Connor aks? does it matter if connor helps manage the properties? how does it influence their tax return? (this questions relate in personal tax return form 1040)Sebastian and Sunny are married. They are currently contemplating filing as married filing separately. Under current law, spouses filing separately must A) use the standard deduction if the other spouse uses the itemized deductions or vice versa. B) both use standard deduction. C) both use itemized deductions. D) either both use itemized deductions, or both use standard deduction.
- Which one of the following statements describes the consequences of using the filing status 'married filing jointly'? A spouse may not be held responsible for tax if that spouse had no income. The tax rates are generally more favorable than that of two single individuals if one has high income and the other has low income. If it is elected on an original return, it may be changed on an amended return.Matilda is a limited partner in Partnership JKL, and she does not materially participate in the business. Choose the response that correctly completes the last sentence about her ability to claim the qualified business income deduction. If she is eligible for the deduction, select the response that describes how the amount of her deduction is computed. If she is not eligible, select the response that correctly explains the reason why she cannot claim the deduction. Matilda is: (a) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065). (b) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065). (c) Not eligible for the deduction because she is not a general partner. (d) Not eligible for the deduction because she does not materially participate in the business.Matilda is a limited partner in Partnership JKL, and she does not materially participate in the business. Choose the response that correctly completes the last sentence about her ability to claim the qualified business income deduction. If she is eligible for the deduction, select the response that describes how the amount of her deduction is computed. If she is not eligible, select the response that correctly explains the reason why she cannot claim the deduction Matilda is: 1) Eligible for the deduction, and the exact amount she is eligible to deduct is computed on the partnership's tax return and reported to her on Schedule K-1 (Form 1065). 2) Eligible for the deduction, but she must figure the exact amount she is eligible to deduct based on information the partnership provides on her Schedule K-1 (Form 1065). 3) Not eligible for the deduction because she is not a general partner. 4) Not eligible for the deduction because she does not materially participate in the busines
- Suppose Sam and Cory are married and are deciding whether to use the filing status of Single or of Married filing jointly. Cory has a taxable income of $50,000 and Sam has a taxable income of $100,000. If they both file as Singles, together, how much would they owe in federal income taxes?Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state? a.The husband and wife must live apart for the entire year. b.The husband and wife must live apart for more than half the year. c.The husband and wife must be in the process of filing for a divorce. d.Only one of the spouses can be working and earning an income. e.None of these choices are correct.Nicanor is a married man with surviving spouse: Assuming Nicanor is head of the family, how much is the estate tax.
