Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 12, Problem 14MCQ
To determine
Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.
To choose: The burden of proof lies with the taxpayers with a net worth exceeding.
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Students have asked these similar questions
8 Taxpayer contributes $4,000 in cash to C-Corporation. Before the company has generated any income, earnings or revenue, Taxpayer receives $2,000 back from the corporation. Taxpayer should treat the $2,000 he received back from the corporation as: a. Dividend b. 1231 Gain c. Non-taxable return of capital d. Capital Gain.
1. Jay transfers land worth $10,000 to a corporation for all the shares. Jay's adjusted basis in the land was $3,000. Jay's gain realized is and Jay's gain recognized is .
2. What are the requirements for a taxpayer to be able to defer gain on the transfer of assets to a corporation in exchange for stock? (Give all 5 requirements)
3. What or who is treated as a person for tax purposes? Answer in alphabetical order:
4. Sara performs services for a corporation and receives stock worth $20,000 which represents 20% of the stock. Henry transfers land worth $80,000 with a basis of $15,000 for 80% of the stock. Did Sara transfer property to the corporation?
a. What is Sara's basis in the land?
b What is Sara's holding period in the stock?
5. H transfers land to a corporation Z in exchange for stock. With respect to the stock:
a) Who is the transferor
b) Who is the transferee
If a taxpayer chooses to have his dividends automatically reinvested in the corporation's stock, they are not reported on
the tax return nor taxed because he did not receive the money.
Choose one
a. True
answer.
b. False
Which of the following items is generally not taxable on a Federal return?
Choose one
a. Income from illegal activity
answer.
b. Inheritance
c. Fees received for jury duty
d. Tips under $20 a month
e. None of these
Chapter 12 Solutions
Income Tax Fundamentals 2020
Ch. 12 - Which of the following is a responsibility of a...Ch. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQ
Ch. 12 - Prob. 11MCQCh. 12 - Prob. 12MCQCh. 12 - Which of the following have privileged...Ch. 12 - Prob. 14MCQCh. 12 - Prob. 15MCQCh. 12 - Prob. 16MCQCh. 12 - Prob. 17MCQCh. 12 - Taxpayers have the right to have an IRS...Ch. 12 - If a U.S. Tax Court agrees with the taxpayer on...Ch. 12 - If the IRS owes a taxpayer a refund, the law...Ch. 12 - Prob. 21MCQCh. 12 - Melodie's taxable income is $39,000 and she pays...Ch. 12 - Jim has a house payment of $2,000 per month of...Ch. 12 - Indicate which of the following statements are...Ch. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - In the 2019 tax year, Michelle paid the following...Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12P
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