Chapter 1, Problem 13DQ

Which of the following may not be treated as a partnership for tax purposes? Arnold and Willis operate a restaurant. Thelma and Louise establish an LLP to operate an accounting practice. Lucy and Desi purchase real estate together as a business. Jennifer and Ben form a corporation to purchase and operate a hardware store. All of the above are partnerships.

Whilst searching for related literatures for her thesis study, Jackie found a tax law which provides that proceeds from the collection of taxes are to be used to rehabilitate a private organization under financial stress. This clearly violates what constitutional right? a. right to just compensation b. right to due process c. right against self-incrimination d. right to equal protection of the law

Valeri is opening a hair salon, but she does not know whatbusiness form it should take. What can you tell her aboutthe advantages and disadvantages of operating as a soleproprietorship versus a corporation?

Whilst searching for related literatures for her thesis study, Jackie found a tax law which provides that proceeds from the collection of taxes are to be used to rehabilitate a private organization under financial stress.This clearly violates what constitutional right? right against self-incrimination right to equal protection of the law right to due process right to just compensation

Will you consider a partnership as a taxpayer? Yes or No.

Robert is the CEO of a closely held business, and he would like to provide life insurance to all of his employees as a fringe benefit. Robert would like life insurance that permits him to pay the premium, so long as it is deductible as a business expense and permits the employee to designate the beneficiary of the policy. Which one of the following is the most appropriate insurance product for Robert's situation? A)Robert should enter into an entity buy-sell agreement with each employee using cash value life insurance.   B)Robert should provide group term life insurance.   C)Robert should provide key person life insurance.   D)Robert should provide split-dollar life insurance.

Which of the following is a reason for the popularity of partnerships as a legal form for businesses? Partnerships may be formed merely by an oral agreement. Partnerships can more easily generate significant amounts of capital. Partnerships avoid the double taxation of income that is found in corporations. In some cases, losses may be used to offset gains for tax purposes.

Limited partners benefit from which of the primary advantages? Their responsibility for the firm's debts is prorated based on their percentage of ownership. They have the opportunity to earn tax-free income. They do not face any potential financial losses They have control over the administrative affairs of the partnership. Their maximum loss cannot exceed the amount of their capital investment.

Mr. Chuang set up a company called Good Home Limited. The company holds several properties in Hong Kong and lease out to earn rental income. Mr. Chuang wonders whether the company should pay property tax or profits tax. He also concerns if double taxation of the same income derived from a property under property tax and profits tax will charge to Good Home Limited and how it can avoid this if so. Advise Mr. Chuang