BUS 585 Taxation Final Project

Project Topic - Tax Year for a Partnership

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http://www.youtube.com/watch?v=Ci9hUhVbUzg

BUS 585 Taxation Chapter 9 and 10

Chapter 10 p.455


20) Julie transferred a personal-use computer to her sole proprietorship. The computer originally cost her $3,000. At the date of transfer, the computer had a fair market value of $1,000. Explain how both Julie and the sole proprietorship will treat this for tax purposes.

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http://www.youtube.com/watch?v=GVvpN7yYsno

BUS 585 Taxation Chapter 7 and 8

Chapter 7 (p.322)

37) Eight years ago, Daniel bought some qualified small business stock for $2,000,000. In the current year, he sells that stock for $13,000,000. How much and what kind of gain or loss does he have? How would your answer change if Daniel sold the stock for $25,000,000?

Chapter 8 (p.361)

37) Wilbur transfers property valued at $100,000 (basis = $70,000) to the Debold Corporation in exchange for 100 percent of its stock.
a) What is Wilbur’s realized gain or loss on the transfer and his recognized gain or loss?
b) What is his basis in the stock received?
c) What is the corporation’s basis in the property transferred?

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http://www.youtube.com/watch?v=JdNMR_hb2bg

BUS 585 Taxation Chapter 5 and 6

Chapter 5

25) Jim, a self-employed individual, takes an important customer to the hockey playoff. Although the face value of a ticket is only $70, he pays a scalper $400 for each ticket. Assuming all other requirements are met, how much can Jim deduct for the two tickets?


Chapter 6

28) David operates his business as a sole proprietorship. In 2009, he spends $20,000 for a new machine (7-year property). His business income, before consideration of any Section 179 deduction, is $17,000. David elects to expense $20,000 under Section 179. Calculate his total depreciation deduction for 2009.

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http://www.youtube.com/watch?v=6r33x-f7HI4

BUS 585 Taxation Chapter 4

Chap 4. Ezra is U.S. citizen, a single individual taxpayer. He works in Japan for a local company. During the year of 2010, his total salary income was $105,000. Assuming that is all of his foreign earned income, much he can exclude from it? (Please search on IRS website, what was the foreign earned income for the year of 2010)
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Refer to http://www.irs.gov/businesses/small/international/article/0,,id=96980,00.html

http://www.youtube.com/watch?v=ZvAtMfoDxZ4

BUS 585 Taxation Chapter 3

BUS585 Taxation Deadline: 6:00pm on 02/27/2011 Sunday Joyce Hew
Chap 3: Joanne wins a $15 million lottery payable over 30 years. From year 1 through year 4, she receives $500,000 annual payment. At the beginning of year 5, she sells her right to receive the remaining 26 payments for a lump sum of $8,900,000. How much does she include in income each year? Especially, does she report capital gain or loss for the sales of the remaining right? Why?
The following is Joanne’s income from lottery:
Year 1 2 3 4 5
Income from lottery $500,000.00 $500,000.00 $500,000.00 $500,000.00 $8,9000,000.00

She reports a capital loss for the sales of the remaining right. The remaining should be $13,000,000 but sold for $8,900,000; there is a loss of $4,100,000.
From year 1 to 4, she receives $500,000 each year, total is $500,000 x 4 = $2,000,000
(a) Joanne wins $15,000,000.00
(b) Total for 4 years $2,000,000.00
(c) Remaining should be (a) - (b) $13,000,000.00
(d) But Sold for $8,900,000.00
(e) Loss ( c) - (d) $4,100,000.00
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http://www.youtube.com/watch?v=l5U-FSZEpfw

BUS 585 Taxation Chapter 1 and 2

Chap 1: Compare the benefits of a $4,000 deduction and a $4,000 tax credit for two single taxpayers. One with taxable income of $40,000 (before this $4,000 deductible) and the other with taxable income of $200,000. (use tax rates listed on page 12 of textbook )

Chap 2 What are a statute of limitations to a taxpayer?

Please prepare each 2-minute video clips for your representation, posting on youtube.com

Deadline: 6:00pm on 02/13/2011 Sunday

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Chap 1: http://www.youtube.com/watch?v=VSt6vuHOlzA

Chap 2: http://www.youtube.com/watch?v=fukTG7l8hHs