What are the tax consequences of doug

Reference no: EM133610954

Question: Here is what he has already told us:

1, The company will manufacture and sell tracksuits (i.e., leisure-type wear).

2, The company will be 100% owned by Doug.

3, The company will be funded by Doug contributing $1,000,000 in cash and a machine (personal-use property). The machine has a fair market value of $16,000, a cost basis of $14,000. The placed in- service date will be 1/15/24 and the recovery period will be 5 years.

What are the tax consequences of Doug 's initial contribution of cash and property to the company? if the business were to operate for federal tax purposes as 1) a C-Corporation, 2) an S- Corporation, or 3) a Sole Proprietorship.

Reference no: EM133610954

Questions Cloud

How much of his msa contribution is deductible : How much of his MSA contribution is deductible if he does not itemize deductions on his federal income tax return

What amount of earnings shall keep and use simplified : operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined any time of the year

What is the amount of the clean vehicle tax credit : What is the amount of the Clean Vehicle Tax Credit, assuming the transaction otherwise qualifies for the tax credit

Outline how the concepts can help you as a leader : Outline how these concepts can help you as a leader in your personal Leadership Development (be specific). React to each of the five myths the authors present.

What are the tax consequences of doug : What are the tax consequences of Doug 's initial contribution of cash and property to the company? if the business were to operate for federal tax purposes

Esdee is person with external locus of control : Esdee is a person with external locus of control. If Esdee is wondering if she can learn to play the guitar, she could think it depends on

Exclude coverage for for-profit : Exclude coverage for for-profit but adequately cover non-profit activities Doesn't adequately cover D&O exposures even without an exclusion Cover

Person with external locus of control : Marius is wondering if he can improve his relationship with his parents. If he is a person with external locus of control,

How is the sba treated for the 734 : how is the SBA treated for the 734(b) adjustment in these situations? a. The capital asset distributed to the SBA partner is SBA property

User Account

All Pages