User Account

All Pages

Determine the taxable year of the llc

Assignment Help Taxation
Reference no: EM13335065

Barney, an individual, and Aldrin, Inc., a domestic C corporation, have decided to form BA, LLC. The new LLC will produce a product that Barney recently developed and patented. Barney and Aldrin, Inc., will each own a 50% capital and profits interest in the LLC. Barney is a calendar year taxpayer, while Aldrin, Inc., is taxed on a July 1 -June 30 fiscal year. The LLC does not have a -natural business year- and elects to be taxed as a partnership.

  1. Determine the taxable year of the LLC under the Code and Regulations.

  2. Two years after formation of the LLC, Barney sells half of his interest (25%) to Aldrin, Inc. Can the LLC retain the taxable year determined in part (a)? Why or why not?

Reference no: EM13335065

Questions Cloud

What percentage of risky portfolio will maximize utility : A fund has expected risk premium of 8% and an expected SD of 20%. T-Bill is 3%. Utility function is U=E(r)-2.5SD^2. What percentage of risky portfolio will maximize utility
Determine what is clarks wacc to fund capital projects : Clark Communications has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Clark's WACC, an analyst has accumulated the following information
The steady state total output grows at what percent rate : In a Solow Growth model with technological change, if population grows at a 2 percent rate and the efficiency of labour grows at a 3 percent rate, then the steady state total output grows at what percent rate?
Human capital management and human resources management. : Discuss the key elements in the definition of Human Capital (HC) in relation to differentiating between the study of Human Capital Management and Human Resources Management.
Determine the taxable year of the llc : Determine the taxable year of the LLC under the Code and Regulations and two years after formation of the LLC, Barney sells half of his interest (25%) to Aldrin, Inc. Can the LLC retain the taxable year determined in part (a)? Why or why not?
Will both julia and jacque be better off if she pays him : Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix he..
State structures for the major monobromination : Write the structures (or name the structures) for the major monobromination products that would be formed from each of the following substrates used. Explain your predictions.
Provide the sql to amend the original table design : You have been given the following specifications of a simple database for a netball association that keeps record of players, teams and matches.
What is the effect of inflation on the financial assets : What is the historic risk of different financial assets of the U.S. economy and what can we do with their historic risk premium. What is the effect of inflation on our financial assets.

Reviews

Write a Review

Taxation Questions & Answers

  Find what the total tax

Find what the total tax due is for 2012, including self-employment tax, for stuart, suppose that he earned $20,000 in wages,

  Street numurkah

Julie Smith commenced a mixed business/sub-newsagency called ALLNews at 45 Orr Street Numurkah on 1st July 2012. She makes an appointment with you to prepare her 2013 income tax return

  What is the total basis of the like-kind property received

How much is the realized gain, how much is the total boot, if any and is there mortgage boot? If so, how much

  Calculation of taxes

On plant depreciation section how did you come out with percentages - he calculation of taxes , how did you come out with this numbers

  What is the abc partnerships required tax year

What is the ABC Partnerships required tax year and Do the allocations have Substantial Economic Effect?

  How a machine will generate an after-tax income per year

A new operating system for an existing machine is expected to cost $260,000 and have a useful life of four years. The system yields an incremental after-tax income of $75,000 each year after deducting its straight-line depreciation.

  What are u.s. tax consequences of hans u.s. activities

During Year 1, Hans had rental income of $300,000 and operating expenses (depreciation, interest, insurance, etc.) of $220,000. On the advice of his accountant, Hans made a Code Sec. 871(d) election in Year 1.

  Compute the after-tax cost of each payment

Compute the after-tax cost of each payment assuming she has a 25 % marginal tax rate - Suppose Sarah is a cash-method, calendar-year taxpayer, and she is considering making the subsequent cash payments related to her business.

  Income tax

Assuming Chen elect not to claim bonus  depreciation, what is the maximum current year  cost  recovery deduction on the asset purchased?

  What is the tax treatment of the deposit

Is Basil a resident of Australia for tax purposes and when is income derived in a lay-by sale and what is the tax treatment of a) the deposit; and b) progress payments?

  Prepare a written opinion addressed to your client

Prepare a written opinion addressed to your client, Water-Jet Ferries - WaterJet has requested your company to provide them with an opinion as to the correctness of this claim by the engine manufacturer. Your opinion must be supported by reference ..

  Standards on present tax planning strategy

The Effect of International Financial Reporting Standards on present Tax Planning Strategy

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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