1031 (a) (1)) I don’t think John and Jane would be able to utilize a 1031 tax exchange in this scenario because I don’t think the handcrafted jewelry that Jane sells would constitute their house as a business property as that is not the main purpose of the property. Personal properties are unable to take advantage of the 1031 tax exchange. 2-C: c. Does Jane have a business or hobby? Why is this…
Sole Proprietorship A sole proprietor is a business owned by a person. This person will file his or her business taxes using Schedule C while filing form 1040. For a charitable contribution, it will not be filed on the person’s Schedule C it will be taken as a deduction on his or her personal taxes.…
(a) Material facts of the case Hacon & Sons Pty Ltd is a family grazing business and a trustee for the Hacon Family Trust. After Mr Walter Hacon and his wife passed away, the remaining shareholders of the Hacon & Sons Pty Ltd are their three sons. The properties that trustee’s grazing business were conducted on are owned by corporate subsidiaries of the trustee, and three sons. The allocation of the operation profit of the company is not conducted by dividend but invest to the distributed fund by the trustee in “off-farm assets”.…
Bravo Consulting Inc has made a detailed financial analysis in order to evaluate Cango’s performance and current financial position compared to Amazon, one of Cango’s biggest competitors. Bravo consulting decided to use the Ratio Analysis in order to analyze the process of the financial statements by computing ratios, and in this way inform the possible changes in the financial condition of Cango.. This Ratio Analysis will allow Bravo Consulting Inc to evaluate the key performance indicators like liquidity, solvency, and profitability of Cango. Such Financial Analysis will disclose Cango’s ability to earn income, identify its strength and weakness’s, and will also evaluate the short and longer term prospects of Cango.…
Dr. Scott W. Stewart DMD, PLLC is a dental practice that is located in Silverdale, Washington. Dr. Scott W. Stewart DMD, PLLC conducts operative dentistry, restorative care, general care, and cosmetic dentistry. This dental practice performs operative services such as fillings, extractions, root canals, and crowns. Their general care services include scaling and root planing, periodontal maintenance, oral hygiene instructions, night guards, sports guards, and emergency treatments. Dr. Scott W. Stewart DMD, PLLC conducts restorative care services such as partial dentures, complete dentures, bridges, and implant crowns.…
Better Beginnings, LLC is a full-service doula agency that is located in Saint Paul, Minnesota. Their services include nurturing of the new mother, infant feeding support, new baby care education, family adjustment, meal preparation, household care, and sibling care. Their doulas of Better Beginnings, LLC, Hallie Rogers, PCD(DONA), CLC and Karen Schultz, CD(DONA), CLEC are certified doulas through the Doulas of North America.…
In this paper I will identify the reason why Jackson and Kara Erb will not receive a refund from the prior year, how their refund and taxes due were calculated, as well as why they were not subject to the alternate minimum tax (AMT). These aspects will be answered from information provide as well as from the scenario presented between a Tax Accountant Peggy Sue as she explains to her new clients Jackson and Kara Erb by utilizing the class textbook, lessons, and other reputable sources. Not until further review of the client’s prior year W-2 and entering all pertinent information within the appropriate tax form 1040 as required, will I reach a conclusion and determined that a refund will be distributed to Jackson and Kara Erb. Their refund and…
Southern Ground Family, Inc. (the “taxpayer”) (FEIN: 47-1976761) timely filed its Alabama ‘S’ Corporation Income Tax Return, Form 20S, for the income tax period ended December 31, 2014. The taxpayer received federal approval to be treated as an S corporation. The taxpayer is the parent company of multiple subsidiaries and acts as a holding company.…
As of December 31, 2011, what amount, if any, of sales taxes due should be recognized in eVade’s financial statements? 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? 3. What amounts should be recognized in the financial statements for the $25 million payment on June 15, 2012?…
Loving v. Internal Revenue Service The interpretation of a statute that an agency administers can come under scrutiny by the court if a lawsuit is filed against the agency. This was the case of Loving v. Internal Revenue Service (IRS). The IRS decided to regulate tax-return preparers because of some concerns about their performance. The new rule required “tax-return preparers to pass an initial certification exam, pay annual fees, and complete at least fifteen hours of continuing education each year” (Miller, Pg. 854).…
The business form the best fits Shania’s situation is a limited liability company. According to sba.gov, “a limited liability company is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership” (para. 1). The funding for Shania’s business venture is provided by her husband; therefore, it makes since that they create a single member LLC to enjoy the simplistic tax filings of a sole proprietorship, assuming that the couple files their taxes jointly (“Limited Liability Company”, n.d.). Furthermore, a LLC provides Shania and Marvin much needed protection from personal liability, should their business go awry, as members are only liable to the extent of their investment (Pozzuoli, Smith, & Pozzuolo, 2008). Lastly, if Marvin desires to become even less involved, Shania may decide to add another partner, which culminates in another benefit of easy sharing of profits (“Limited Liability Company”, n.d.).…
Ernst & Young LLP was founded in 1894 and its located in New York, New York with additional offices in the United States, Middle East, Australia, Europe, and Asia. It specializes in providing auditing, assurance, technology and security risk, enterprise risk management, transaction support, merger, and acquisition, actuarial and real estate advisory services as well as many other services. The company the company in the scandal was Weatherford International is one of the biggest multinational oil and natural gas service companies. It provides varies services and products such as for drilling, evaluation, completion, production and intervention of oil and natural gas wells.…
Dastmalchi LLC developed several keys to success when the firm launched. Their “fast follower” strategy led them to penetrate many different markets and target different audiences, while maintaining low operational costs. The company had the ability to predict which new products would be successful in the market and quickly release their own, more affordable, version to the public. This strategy was carried out by the company finding manufactures of the product and repackaging and rebranding the product to make it their own. Rather than using their own resources to innovate and market their own unique products, Dastmalchi found a way to piggyback off the success of others.…
Chapter 13 Case Study Response 1. What would you say? In speaking with Elizabeth, I would mention that the store is performing well and has been meeting expectations thus far. After being positive about the store’s performance I would lead into the issues I am having with the management there.…
Stratton Oakmont, Inc. was a Long Island, New York based "over-the-counter” brokerage company founded by Jordan Belfort. Stratton Oakmont is one of the well known and most controversial stock scandal of all times. Jordan Belfort also known as “wolf of wall street” was a stockbroker who ended up doing a big stock manipulation. He looted his clients by underwriting an initial public offer(IPO) for a company that doesn’t exist then they used pump and dump scheme to sell its self-owned stocks by giving false and positive statements so that they can sell the low-priced stocks at higher prices. Once an opened, company artificially manipulated the price of the share, since they had virtually all the shares.…