Alex purchased $5000 worth of shares in a small biotech company on 1 September 2019. At 31 December 2019, the company declared and paid an interim dividend of $700 which was unfranked. What amount must Alex include in his assessable income for the 2020 year as ordinary or statutory income?   a. $700   b. None of the above.   c. $5,000

Nick is the 100% owner of Go Travel, Inc. a calendar year S corporation.  Nick has a $500,000 stock basis as of January 1, 2019.  During 2019, Go Travel had a taxable income of $100,000.   At the end of 2019, Go Travel distributes equipment  FMV $400,000, basis $300,000 to Nick.    What is the taxable income for Nick for 2019? _________________   What is his stock basis at the end of 2019? __________________   What is his basis in the equipment at the end of 2019? _______________     Which of the following events would not terminate the S election? Nick sells some of his stock to Dome Partnership. Nick sells some of his stock to a non-resident alien. Go Travel, Inc. sells newly authorized preferred shares (i.e., preferred as to dividends) to Brian, a U.S. citizen. Nick consents to have the S election voluntarily revoked. Go Travel, Inc. sells newly authorized Class B non-voting common shares to Larry, a U.S. citizen.

Your client (Irene) has provided you with the following information below. 2018 2019 2020 Losses are represented in brackets Income from employment Income from property Income from self-employment Capital gain (loss) from selling shares in 123 Ltd., a public company Capital gain (loss) from selling PUP Capital gain (loss) from selling LPP Capital gain (loss) from selling shares in 456 Inc., a small business corporation $70,000 (S35,000) $50,000 $2,500 $85,000 $20,000 $55,000 $3,500 $78,000 ($15,000) ($55,000) ($1,200) $1,000 $3,000 ($22,000) (S1,000) $5,000 $27,000 $2,500 $7,500 Irene has the following loss information from previous years: • LPP carryover loss from 2016 of $1,000 • Net capital loss from 2017 of $10,000 • Non-capital loss from 2012 of $25,000 • No QSBC deduction available. She used all her $883k lifetime limit last year when she sold one of her businesses. Required: You need to calculate the Division B income, apply any Division C deductions, determine the taxable…

The Tax Formula for Individuals, A Brief Overview of Capital Gains and Losses (LO 1.3, 1.9) In 2020, Manon earns wages of $54,000. She also has dividend income of $2,800. Manon is single and has no dependents. During the year, Manon sold silver coins held as an investment for a $7,000 loss. Table for the standard deduction Filing Status Standard Deduction Single $12,400   Married, filing jointly 24,800   Married, filing separately 12,400   Head of household 18,650   Qualifying widow(er) 24,800   Calculate the following amounts for Manon: a.  Adjusted gross income $fill in the blank b.  Standard deduction $fill in the blank c.  Taxable income $fill in the blank

Nadine  bought 100 shares of oak stock for $30 a share on april 30 2019 on july the 1st 2020 she noticed  that the stock had increased  in value  to 35 a schare she decided to sell her share Nadine  only other incomr for the year consists  of 65000 in wages she will claim standard  deduction  when she filies her return . Nadine revenues  from sales of stocj will increase  her taxable income by  500 and this 500 will be taxed at a capital  gsin rate of 15% 500 and the 500 will be taxed at her regular  marginal  tax rate of 22%  3500 and this 3500 will be tax at a capital  gain rate of 20% 3500 and this will be taxed at her regular  marginal  rate of 22%

Domestic

V6. Sean Grey acquired a 30% interest in Beau Grey Productions, LLC several years ago for $48,000. He does not materially participate in the business. At the beginning of 2021, Sean has a tax basis in his LLC interest of $20,000. In 2021, Beau Grey incurred a loss of $180,000 and did not make any distributions to its members. Compute the loss from Beau Grey which Sean can deduct on his return for 2021 assuming that he has rental property from which he has net income of $8,500.

On December 31, 2018, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his 9 year old son, Patrick London. On February 24, 2019, the shares pay eligible dividends of $2,060 ($2,843 taxable amount) and, on August 31, 2019, Patrick sells the shares for $39,800. Required: What are the tax consequences for Mr. London and Patrick in each of the years 2018 and 2019? If there are no tax consequences for either individual in a given year, you should clearly state this fact in your answer.

Nadine bought 100 shares of pie stock for 15$ on March 1.2030. On august 21,2021 she noticed stock has increased in value to 25$ a share. She decided to sell all her shares. Nadine’s only othe income for the year 68000 from wages. She will use the single filing status. Nadine’s revenue from the sale of stock will increase her taxable income by

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