Advanced Business Taxation

What is meant by method of accounting for tax purposes? What are the general rules regarding selection of a method of accounting for tax purposes?

Taxation: Change in accounting method for tax reporting

Once a method of accounting has been selected and applied for tax reporting, it can only be changed with permission of the IRS. Any change from an improper method to a proper method will automatically be approved after filing for permission. Required: 1. List three common types of changes in method subject to revie ...continues

Business Taxation

Six years ago, Rollo Inc., gained a nonqualified stock option to Mrs. Jacques to buy 5,000 shares of Rollo stock per $15 per share for six years. At the date of grant, Rollo stock was selling on the AMEX for $14.75 per share. This year, Mr. Jacques exercised the option when the price was $45.10 per share. 1. How much compensa ...continues

Taxation

Why would we need limitations on tax benefits of controlled groups?

Tax Provisions

If there is a tax provision pending before Congress that will negatively effect a transaction of a client, what would you advise your client to do?

Tax Law

How do court decisions lead to changes in tax law?

Tax Planning

What role does tax planning have in a major transaction like a merger?

Business Taxation

What advantages are there from filing as a consolidated group? What disadvantages?

ACCOUNTING

Two years ago, Herbert, a widower, made a gift of marketable securities to his 35-year-old daughter, Sabrina, on which he paid a Federal gift tax of $3 million. Herbert dies in the current year and his estate is greatly reduced in value due to his having given away most of his assets over his lifetime. Herbert’s executor files a ...continues

Recognition of gain in liquidation of a partner's interest

The Dec. 31, 2006, balance sheet of the BCD General Partnership reads as follows. Basis FMV Cash $180,000 $180,000 Receivables 0 0 Capital ...continues