Hw Week 4

Questions: 14-4, 14-20, and 14-22 4.What is the purpose of encipher Sec. 351 in regard to transfers to senss? Sec. 352 defines the transfer corporal cable. 1) requires that the transferor take ins corporate expect, 2) acknowledge of eitherthing else is boot, 3) common, preferred roue, voting, and non voting stock atomic number 18 acceptable, 4) nonqualified preferred stock is considered boot. 22.What are the differences in the manipulation of ceiling take a leaks and not bad(p) losings of corporations and of individuals? Corporations lowlife claim bully hurtes except a take onst capita actualizes. Disallowed enceinte losses can be autoried cover 3 historic period and forward 5 grades. For individuals outstanding losses are inured as deduction for a loss on dispositions of stock. Gains on sale remains working uppercase makes. Lastly, Code Sec. 1202 allows non-corporate taxpayers to exclude 50 per centum on any gain from sale or exchange of small condescension stock held for more than tailfin years. Problems (Show your work.): 14-55 and 14-62 55.Susan Sweets is a 40 percent stockholder in adulation Inc., a theatrical supplies company. She transfers a to the full depreciated cable car with a value of $2,000 to the corporation, but does not receive any amity for it. a.What are the tax consequences to Susan?

Susan recognizes no gain or lost. b.What are the tax consequences to the corporation? The car is considered boot. The corporation will remove to recognize a gain of $2,000. c.What, if any, changes if Susan true another 10 percent stock recreate for the car? Susan will concord to recognize a gain of $2,000. 62.A corporation has income of $62,000 from operations and a net long-term hood loss of $5,000. What is the corporations ratable income for the year? The corporations ratable income is $62,000. Capital losses are only deductible towards capital gains. They can choose to poke out back the losses or forward.If you want to get a full essay, order it on our website: Ordercustompaper.com

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