Discussion Post, Background: Thomas and his wife Diana have operated their own, Taxation

Discussion Post, Taxation

Assignment Help:

Background:
Thomas and his wife Diana have operated their own children''s daycare for the last three years. They also own the daycare facility, a building and the adjacent land located on 1322 Glades Road. They have a limited amount of working capital but do not foresee the need to make additional capital improvements in the near term. Their total business assets are about $250,000 with a $120,000 mortgage on the building as their only liability. In recent years they have not kept exact records, but have been able to withdraw any unneeded assets at the end of the year, which totaled approximately $50,000 in cash in 2013.
In 2013 they reported a net income of $85,000. In addition, Thomas has used his personal car for business travel and has charged the business mileage at the appropriate mileage when he has traveled to Miami for continuing educational credits and Diana has traveled to New York once each year for a trip with girlfriends and to attend a conference on childhood development. Although Thomas and Diana have never been sued, in recent months they have started to think about possible legal liability.
Write Discussion on This:
As a good friend of Thomas and Diana and a CPA, what is your opinion about incorporating the business going forward? List at least two reasons for or against incorporating, and any change the S-corp status would have on their taxable income from the company?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Discussion Post, Taxation

Related Discussions:- Discussion Post

Collective investment fund, A fund that is managed by a trust company or a ...

The maximum capital cost allowance claim, During the current year, Denos Co...

Prepare the journal entries necessary at december 31, The Diamond Glitter C...

What are the tax status of the property, Miguel receives tangible personal ...

RETURN ON INVESTMENT, EXPLAIN IN DETAILS RETURN ON INVESTMENT

Return of invesment.., return of invesment..

Online Exam, Hi Dear, could you do the online exam with me !! Thank you

Individual income taxation, John Alan Kelly and Rosalyn Elaine Kelly, a mar...

Example of tax file, Research Problem 2: Carol is a successful physician wh...

Capital gains, Dan and Cheryl are married , file a joint return, and have n...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT