The substantial rehabilitation requirement provides that a taxpayer must incur rehabilitation expenditures which exceed the greater of (1) the adjusted basis of the property before the rehabilitation ($250,000), or (2) $5,000. Therefore, if Diane chooses to incur only $200,000 on the rehabilitation, this amount would not be enough to qualify as a "substantial rehabilitation" and no credit would be available. The depreciable basis of the property would be the sum of its original cost plus the capital improvements, or $450,000 ($250,000 + $200,000).…
We have been requested to review and present to you our recommendations for the start of your new Pharmaceutical/Biotech Consulting Company. To begin, we would like to review the information that we have been given from you to KMCE&A. We understand that you have a background as a business executive as well as a scientific background. Your business plan states you are starting up a consulting company that will handle R&D monitoring for other companies that are in the Pharmaceutical/Biotech Industry. Your client base is mostly in the New Jersey and Pennsylvania area but hope to eventually expand to a global customer base. Your main investments will be in salaries in that as a services industry you will have minimal asset investments. Your personal preference is to have no personal liability. You would like to keep the ownership small and retain the majority ownership of 50% to 60% so that you can keep control of the decision making. However you are open to issuing stock if the funding of your business would benefit from this over financing through debt. You also expect to have a loss of approximately $25,000 in the first year due to start up costs and become profitable by year two. You initially will have three employees joining you at the start of the business. Two employees, Scott & Kate, will be contributing services of an IT specialist and a marketing/public relations as well as a program manager. The third member, Todd, who is an attorney, will not only contribute legal services but also an initial investment of $50,000. We also understand that you have $200,000 of personal funds to invest as well as have obtained an additional $500,000 in financing through securing your own personal assets.…
In the case Selfe v. United States, 778 F.2d769, the taxpayer established a line of credit in her own name, secured by…
As part of his contract at his new job, Jim is provided a company car and gas card to go back and forth to work. He sometimes uses the car for out-of-town travel approximately once a month. Jim also uses the car and the gas card for his family vacations, dinner, etc.…
The IRS addresses this issue in Rev. Rul. 78-141, 1978-1 CB 58, where an attorney (who had malpractice insurance) paid a client for erroneous advice but did not file a claim against the insurer. The IRS found that the attorney could not deduct the payment as a loss under Section 165 or a business expense under Section 162.…
David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,740. They have made prepayments of $1,100 and also have a child tax credit of $1,000.…
| Over a period of time Latrell accumulated enough frequent flyer miles to purchase a free roundtrip ticket to Milan, actually valued at $1200. The frequent flyer miles he used were generated through business travel expenses paid for entirely by Latrell’s employer.…
Wendy is 20 years old, single, and a U.S. citizen with a valid social security number.…
c. Green Thumb issues 40 shares of common stock to Paula plus a $100,000 ten-year bond bearing interest at 6% and 15 shares of common stock to Mary, plus a $100,000 ten-year bond bearing interest at 6%.…
in this course. You do not need to wait until you have received an unaccepted…
The reason why prospective user would use IRS FreeFile is because it’s a service available through the Internal Revenue Services (IRS), which allows U.S taxpayers to prepare and e-file their federal tax return for free, either thorugh brand name software or online fillable forms. Free File is managed and operated by the Free File Alliance, a consortium of private tax-preparation companies. Although the service is accessed via the IRS website, the Free File Service is not managed or operated by the IRS. Free File provides two options to tax payers: Free File software, or Free File Fillable Forms. The features of the program is that Free File Alliance is consortium of 14 commercial tax preparation software providers who offer brand name tax software products for free. Each member is allowed to set eligibility requirements for their software products. However, the cumulative offers must allow 70 percent of U.S taxpayers and estimate of 100 million people, to be eligible for at least one product.…
Rita just finished completing her educational requirements to become a dental hygienist. She has been offered jobs in two different cities and is trying to determine which one she should accept. Both employers offer similar benefits and working conditions, but the jobs are in two different states. Rita will move to the state in which she accepts a position.…
| Amanda should file her request as a separate return, and Head of household, so she is entitled to a personal exemption, standard deduction as a head of household and dependency exemption for Alex Jr. only.…
Taxol is an anticancer drug produced by extraction from the bark of the pacific yew tree called Taxus brevifolia, which was discovered by Harvard trained botanist called Arthur Barclay in 1962 (wall and wani, 1995). It was renamed to paclitaxel when it was commercially developed. It is in a form of whitish crystalline powder with a melting point of 216 ºC, very insoluble in water, highly lipophilic, higher protein binding rate and disturbs the structure of the inner part of the cell membrane (Goldspiel, 1997) and (Ledwitch et al., 2013). It contains heptadecane (17-carbon) skeleton with a structural formula of C47 H51 NO14 and a molecular weight of 853.9 g/mol. The antitumor activity of the drug is mainly due to the side chain; a ring, oxetane ring and C2 benzoyl group (Priyadarshini and Keerthi, 2012).…
Chapter 1 introduction & tax residence •Direct taxes – taxes paid directly to government (income tax , RPGT) •Indirect taxes – taxes paid to government via 3rd party( sale,service) •Income tax –scope of charge( S3 of ITA) has been modified by ‘’tax exempted’’ Income tax shall be charged for each y/a upon income of any person accruing in or derived from MY or received in MY from outside MY Income known as revalue gain( capital gain never go for inc tax Person=individual , Co(chargeable person) partnership is not C.P •2 type of chargeable person which are resident and non resident …