Description of this paper

Cameron, an individual, and Totco, Inc., a domestic C

Description

solution


Question

Cameron, an individual, and Totco, Inc., a domestic C corporation, have decided to form CT, a California LLC. The new LLC will produce a product that Cameron has recently developed and patented. Cameron and Totco, Inc., will each have a 50 % capital and profits interest in the LLC. Cameron is a calendar year taxpayer, while Totco is taxed on a July 1-June 39 fiscal year. The LLC does not have a "natural business year" and elects to be taxed as a partnership.;a. Determine the taxable year of the LLC under the existing Code and Regulations.;b.Two years after formation of the LLC, Cameron sells half of his interest (25%) to Totco, Inc. Can the LLC retain the taxable year determined in part a?

 

Paper#33183 | Written in 18-Jul-2015

Price : $27
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