How should susan tom and jim treat their loss based on tax

Assignment Help Taxation
Reference no: EM131131128

Assignment

Susan formed Dental LLC, and received 80% interest in the company. Two other dentist Tom and Jim received a 10% interest in the company. Susan provided all necessary capital, while Tom and Jim provided experience and commitment to work for Dental LLC. Taxed as a partnership for federal income tax purposes.

Susan worked about 300 hour for the company, and received a guaranteed payment of $100,000. Tom and Jim each worked about 600 hours and each received a guaranteed payment of $150,000. Company generated a net loss of $530,000.

Required: How should Susan, Tom and Jim treat their loss based on the tax codes?

Reference no: EM131131128

Questions Cloud

What is the value per share of boehm stock : Constant Growth Valuation Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is ..
What should the broker recommend : What should the broker recommend if the couple wants to maximise the return on their investment?
Identify the critical issues or problems in the case : Identify the critical issues or problems in the case and analyze the key facts related to the issues or problems. Discuss a tentative solution that addresses the issues or problems and how you would implement your solution.
What does horizontal segmentation mean in this paragraph : What does horizontal segmentation mean in this paragraph?- very critical point, he made us realize the importance of what he likes to call "horizontal segmentation."
How should susan tom and jim treat their loss based on tax : Susan formed Dental LLC, and received 80% interest in the company. Two other dentist Tom and Jim received a 10% interest in the company. How should Susan, Tom and Jim treat their loss based on the tax codes?
What did nan aka observe on gavaskar body : What did Nan aka observe on Gavaskar's body on the day of his birth? How did it help in retaining his identity
What are the us tax consequences of the bank loan : What are the US tax consequences of Greg contributing the $50,000 for all the stock, The bank loan, The ordinary losse for the two years, Ex-wofe receiving half the stock and The ordinary income from 2015.
Essay about my mother stuck on body paragraphs : Writing a personnel essay about my mother stuck on body paragraphs
What is the dollar anoint coming in and going out : One week a computer store sold a total of 36 computers and external hard drives. The revenue from these sales was $28765 If computers sold for $1180 per unit and hard drives for $125 per unit, how many of each did the store sell? How many computer..

Reviews

Write a Review

Taxation Questions & Answers

  Identify the issues raised and the relevant legislation

Identify the issues raised and the relevant legislation in the context of ITAA97 and identify any cases and other sources of information relevant to the issues and legislation.

  Define presumptive tax

Presumptive tax is one way of enforcing compliance with the tax requirements. You are required to define presumptive tax and give examples of situations where presumptive tax is applied

  Negotiating the sale of a tract

Norm is negotiating the sale of a tract of his land to Pat. Use the following classification scheme to classify each of the items contained in the proposed sales contract:

  Foundation''s request for tax exemption

the proceeds of that auction returned to unique donors to the Foundation, would this alternative provision affect the Foundation's request for tax exemption and how?

  Questionyou are an independent tax advisor and one of your

questionyou are an independent tax advisor and one of your clients triceratops toys manufacturing limited has provided

  Prepare her income tax return in 2009

You will also need to consider the liabilities that arise because of the specific laws that cover tax agents. This would include liability to Pamela and any possible problems with your tax agents licence.

  What is the consumption tax rate for india and china

An import tax. This tax applies to import only. It does not apply to home products. What is The consumption tax rate for India and China.

  Advocate taxing capital gains at ordinary income rates

Employer gives employee a $50 gift certificate each month to encourage eating lunch at a nearby healthy eatery instead of fast food - Would you advocate taxing capital gains at ordinary income rates or preferential rates?

  What guidance they provide to this complex area of tax law

By examining the following two New Zealand tax cases discuss what guidance they provide to this complex area of tax law.

  The transfer tax has been modified numerous

The transfer tax has been modified numerous times since the 1970s. There have been many arguments for and against this tax. Let's take a look at some of those changes and why the changes were made. What was the political environment at the time? What..

  Deferred tax liability

Assume that at the end of 2009, the accumulated temporary tax liability difference related to future years is $80,000. Prepare the journal entry to record any adjustment to deferred tax liabilities at the end of 2009.

  Why the tax laws require the cost of certain assets

Explain the reasoning why the tax laws require the cost of certain assets to be capitalized and recovered over time rather than immediately expensed.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd