Reference no: EM131160925
Assignment: Constructive Dividends, Redemptions, and Related Party Losses
1. Write a three to four page paper in which you:
Based on your research and the facts stated in the scenario, prepare a recommendation for the client in which you advise either acceptance of the proposed adjustments or further appeal of the issue based on the potential for prevailing on appeal.
2. Create a tax plan for the future redemption of the client's stock owned in the construction company that will not be taxed according to Section 301 of the IRC.
3. Propose a strategy for the client to receive similar amounts in compensation in the future and avoid the taxation as a constructive dividend.
4. Use the six step tax research process, located in Chapter 1 and demonstrated in Appendix A of the textbook, to record your research for communications to the client.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date.
|
Conclude the real rate of interest to be
: According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.65% (nominal rate of interest). If risk were considered to be 0 (zero) and inflation was expected to average 0.85% for the next two years, what should one conclude the real..
|
|
Explain differences between absorption and variable costing
: Explain the differences between absorption costing and variable costing. Explain, with the help of an example, how a company could use a variable costing system, as well as an absorption costing system.
|
|
Do you think there should be more or less communication
: Do you think there should be more or less communication? What if the information is classified? In addition, research how much information the state and local levels disseminate to the public.
|
|
Common stock dividends
: Anyway, all things considered, "it was a very good year" so much so they paid their loyal shareholders $50,000 in common stock dividends. OK, given all that, what was their Federal tax bill?
|
|
Create a tax plan for future redemption of the client stock
: Create a tax plan for the future redemption of the client's stock owned in the construction company that will not be taxed according to Section 301 of the IRC.
|
|
Analyze how the organizational management and administration
: Write a 1,400- to 1,750-word paper in which you identify, compare, and contrast the policing function at the local, state, and federal organizational levels. Analyze how the organizational, management, administration, and operational functions at ..
|
|
Thoughts on the prevention strategies against cyber crime
: What are your thoughts on the prevention strategies against cyber crime and terrorist? What would you do differently
|
|
Shares of common stock outstanding
: WhackAmOle has 3 million shares of common stock outstanding, 2.0 million shares of preferred stock outstanding, and 75,000 bonds. Assume the common shares are selling for $64 per share, the preferred shares are selling for $58.00 per share, and th..
|
|
What will be jb wacc
: Suppose that JB Cos. has a capital structure of 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 11 percent while its cost of equity is 15 percent. Assume the appropriate weighted-average tax rate is 25 percent.
|