Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question
During 2011, Mary Todd transferred land to Sandy Development Ltd., a newly created corporation. The land was acquired a few years ago in order to build an income property on it. Mary is the sole shareholder of Sandy Development Ltd. The FMV of the land at the time of the transfer was $500,000 and its ACB was $120,000. Mary has a net capital loss carryforward of $25,000 (based on a 50% inclusion rate).
No Class A preferred or common shares were issued prior to the transfer and no other shares have been issued since.
a) Mary comes to consult you on the tax consequences of the transfer. She was told that it was possible to make an election for tax purposes so that there would be no tax consequences on the transfer. Mary gives you all the information with no verification on your part.In a letter addressed to Mary, give her your opinion on how the transfer should be carried out under subsection 85(1) so that she will have no immediate tax consequences and will benefit from all the available tax attributes. You should also tell her the PUC and ACB of the Class A preferred shares and the common shares that she has received and deal with the tax consequences on the eventual redemption of the 3,500 Class A preferred shares.
Mary informs you that in 2013, she will make a capital contribution of $100,000 to Sandy Development Ltd. to enable it to purchase and develop other pieces of land. The banker for the corporation requires that the contribution be made in the form of a share issue and not in the form of a loan made by Mary to the corporation. What recommendation will you make to Mary in order for her to be able to withdraw the $100,000 without future tax consequences?
Evaluate what is Alvin's recognized gain (loss) on this transaction and find what is Alvin's tax basis in his new building?
Prepare a memo to your CFO indicating the outcome of such a change on current taxes and outlining the needs for making this change and provide recommendation to Salem management regarding tax implications of this contribution.
How much total combined income tax do Black and George pay in the current year and how much is Sparrow's tax liability for 2011 and How much qualifies for the charitable contribution deduction
What is the firms total cost based upon the EOQ calculated above and how many units of safety should the firm hold and what is the firm's re-order point for the item on inventory being evaluated?
How would Vicki's assets be recorded for tax purposes by Palm Corporation and what is the amortization amount for each intangible asset in the current year?
Evaluate the Brock's individual tax return
The net effect of this arrangement is a reduction in their income tax liability - Will Carol and Jared''s plan work? Explain
Bob and Mary want to know how they should finance the wedding and if tax implications may be a factor and the most general end product of a research question is a research memo.
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
Shirley is an actress. She has had various roles in Australian movies as well as guest appearances on many TV serials. During the current year, the following events occurred:
Why is this case particularly important to Tennessee taxpayers? When was the decision rendered? Is this case still reliable with respect to similar issues and facts? Why is this case particularly important to Tennessee taxpayers?
Create a memo to Texaco Inc's chief accountant showing the appropriate income tax allocation required for the above items, adding the appropriate balance sheet presentation
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd