Please need answers to these problems by 9:pm or earlier today. Let me know as soon as possible if you can do it or not. If not can i know the reason you cannot. Thanks. 1. Aaron owns a venture capital firm. One of his employees at the firm has a great idea for a new technology company and wants Aaron to invest. Due to the employees exceptional services over the past year, Aaron decides offer the employee a loan with a below market interest rate. What are the tax consequences to the employee regarding the difference in the interest rate? (Points : 5) 2. Jim and Sally are relatives. Jim loans Sally $12,000 to buy a new car. After Sally has paid back $2,000, Jim decides to forgive the rest of the loan and let Sally enjoy her car. What are the tax consequences to Sally? What about to Jim? What if Jim?s loan had been $25,000 instead of $12,000 and Sally hadn?t repaid a dime before Jim decided to forgive the balance? (Points : 5) 3. A local investment company loans Derek $80,000 to start his own small business. A month later, the federal government passes a bill reimbursing all investment companies for small business loans made under $100,000. Derek is therefore discharged from his entire loan. What are the tax consequences to Derek on the $80,000? (Points : 5) 4. Dave works as a partner at an accounting firm. In order to land a big new client, he takes them out to the trendiest nightclub in town and pays for both meals and drinks. To cap things off at the very end of the night, he orders a bowl of caviar and crackers and a buys $5,500 bottle of champagne. The next day he takes the clients to an exclusive VIP cocktail mixer related to the reelection of the client?s preferred political candidate (and pays for their entrance, drinks, and political contribution), and then to a country club to play in the monthly local accounting association golf matches (and pays for their golf fees and meals). Are these entertainment expenses deductible? If so, how much of the costs are deductible? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 5. Bill is a partner in an accounting firm. To find some new clients, he decides to join the ritziest county club in the area so he can socialize with wealthy individuals. After joining, he meets a business executive named Todd. Bill takes Todd to an NBA basketball game by buying out an entire private luxury box for just the two of them (and their wives). Todd has so much fun that the next week Bill buys tickets to another game of the same NBA team and gives them to Todd so he and his wife can go by themselves. Are these entertainment expenses deductible? If so, how much of the costs are deductible? Would your answer change if Bill wasn?t an accounting partner but instead was a sports executive in the NBA? Please explain. Feel free to use IRS Publication 463 to assist your answer - http://www.irs.gov/pub/irs-pdf/p463.pdf (Points : 5) 6. Four business men named W, X, Y, and Z decide to form a partnership called InvestX. The partnership is a for-profit business organized under US tax laws. Partner W contributes an office building valued at $200,000. He bought it six years ago for $120,000 but had to pay recording fees, broker fees, and property taxes for an additional $35,000 at the time of purchase. Partner X decides to give InvestX some artwork for the office building that he purchased for $250,000 three years ago. The artwork is currently valued at $55,000 however, as last year the pieces were discovered to be fraudulent replicas rather than originals as previously thought. Partner Y doesn?t want to offer money or property but, as an attorney, agrees to write the operating documents for InvestX as well as numerous contracts and agreements the business needs to get started. The services he contributes are worth approximately $25,000. Partner Z is in the technology business decides to trade for his interest in InvestX by giving the partnership 28 PC desktop computers he has in his warehouse. The computers are two years old and worth about $30,000, but have a zero basis in his hands due to depreciation and amortization. Please answer the following questions worth 5 points each: 1. What is W?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 2. What is X?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 3. What is Y?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 4. What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties?What is Z?s basis in his partnership interest? What is the basis for InvestX? What is the realized gain or loss for both parties? 5. InvestX decides to open a subsidiary nearby its headquarters and donate all the artwork obtained from Partner X as a capital contribution. What are the tax consequences (realized and recognized gain or loss) for each party? (Points : 25),Please let me know as soon as possible if you can do it or not. Thanks.,Hi Michael, Are u the on Tutor online right now? Can i Know the reason you could not do the assignment? Is it possible yo get someone else if it is not possible for you? Please let me know. Thanks.
Paper#1151 | Written in 18-Jul-2015Price : $25