User Account

All Pages

How much the loss mike can deduct on his tax return

Assignment Help Finance Basics
Reference no: EM131178998

Assignment

Your client Mike Jones, a full-time computer programmer, purchased a limited partner interest for $50,000 in a computer software limited partnership run by one of his friends. Mike spent approximately 200 hours actively providing services for the partnership during the year. The limited partnership generated a $300,000 loss of which $85,000 is Mike's share. Assume Mike's only other income is W-2 wages of $150,000.

a) Wrie a memo to your partner, citing the relevant tax authority, to explain how much of the $85,000 loss Mike can deduct on his tax return.

b) Assume the same facts as above except the computer software company is a limited liability company

Write a memo to your partner, citing the relevant tax authoirty, to explain how much of the $85,000 loss Mike can deduct on his tax return.

Reference no: EM131178998

Questions Cloud

What is the difference between common and preferred stock : What is the difference between Common and Preferred Stock? Explain the concept and process (recording) of Distributions - Dividends and Redemptions (Treasury Stock)
Why required rate of return on project may have increased : the firm decided to retract its offer because of an increase in its required rate of return on the project, which caused the NPV to be negative. -  Explain why the required rate of return on its project may have increased.
Strategic direction of the organization : We talk a great deal about getting buy-in with the strategic direction of the organization after an acquisition. How should managers develop buy-in from the acquired company personnel? How would getting the support of those individuals aid the me..
Repricing trigger that maximizes the initial value of option : A company compensates executives with 10-year Euaropean call options which is granted at the money. If there is a significant drop in the share price, the company's board will reset the strike price of the options to equal the new share price. Calcul..
How much the loss mike can deduct on his tax return : Wrie a memo to your partner, citing the relevant tax authority, to explain how much of the $85,000 loss Mike can deduct on his tax return. Assume the same facts as above except the computer software company is a limited liability company
Determine scotts net capital gain or net capital loss : determine Scott's net capital gain or net capital loss for the year ended 30 June of the current tax year. - How would your answer to (a) differ if Scott sold the property to his daughter for $200,000?
Which model do you feel is more effective at reducing rate : How are these 2 models different? Which model do you feel is more effective at reducing the rate of recidivism? Do you believe that both countries should adopt the same model of incarceration?
At what interest rate would this be fair deal : Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $44,000 per year forever. A representative for Curly’s tells you the policy costs $690,000. At what interest rate would this be a fair deal?
Draw a concept map or annotated attack tree : CSI2102- Information Security. Task: Utilising the background information, draw a concept map or annotated attack tree which represents the context of John Kleen Communication & Media Ltd's work environment and also demonstrates: the links the data..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the monthly loan payment

What is the monthly loan payment, for a 30-year home loan, if i = 6.5% and you would like to borrow $500,000

  Why are contingent assets and liabilities like options what

a futures contract is an agreement involving the future exchange of an asset for cash at a price that is determined

  Discuss how the service industry may change in the next 10

1.course recap please responds to the followingtake a position on this statement hospitality organizations are

  Find the current 10-year bond rate using a google search

Find the current 10-year bond rate using a Google search - Find the average return of an S&P500 Index Fund,

  Natural gas and gas products department

ConocoPhillips (COP) Natural Gas and Gas Products Department (NG&GP) manages all of the company's activities relating to the gathering, purchase, processing, and sale of natural gas and gas liquids. Chris Simpkins, a recent graduate, was recently ..

  What is the net operating profit after taxes

You have just obtained financial information for the past 2 years for Powell Panther Corporation. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2004? b. What are the amounts of net operating working capit..

  How much would a municipal bond have to pay to be equivalent

How much would a municipal bond have to pay to be equivalent to this on an after-tax basis if you are in the 28 percent tax bracket?

  Compute the amount of cash paid to suppliers of inventory

analyzing changes in inventory and accounts payable. ericsson a swedish firm specializing in communication networks

  Calculate of abnormal return

Here are alphas and betas for Intel and Conagra for the 60 months ending April 2009. Alpha is expressed as percent (%) per month.

  Prepare another infusion center capacity level forecast as

prepare another infusion center capacity level forecast as follows assume the same three infusion chairs but add

  The manager of sensible essentials conducted an excellent

cost of debt and equity the manager of sensible essentials conducted an excellent seminar explaining debt and equity

  How much does he pay back in 6 months

A student borrows $4000 for tuition to be paid back at a simple interest rate of 5% in 6 months. How much does he pay back in 6 months?

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