Purchase Solution

Property Income tax: Corporations & Partnerships

Not what you're looking for?

Ask Custom Question

27. Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for
1,000 shares of Blue Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $400,000 and a fair market value of $550,000 on the date of the transfer. In the current year, Blue Corporation (E & P of $1 million) redeems 100 shares from Eleanor for $290,000 in a transaction that does not qualify for sale or exchange treatment. With respect to the redemption, Eleanor will have a:
a. $250,000 dividend.
b. $290,000 dividend.
c. $250,000 capital gain.
d. $290,000 capital gain.
e. None of the above.

Purchase this Solution
Solution Summary

Property income tax for corporations and partnerships are examined.

Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Income tax: Corporations & Partnerships

    225854 Income tax: Corporations & Partnerships 23.

  • Accounting: Tax Reform

    Most common loopholes used by corporations and partnerships to avoid paying income tax: Studies over the recent past have shown that very few corporations pay taxes on their profits with other companies not paying any tax at all through the use of

  • Should Emily and Richard use a partnership form for apartmen

    There are many tax issues when forming a partnership. The first one and biggest one is that partnerships are "flow through" entities.

  • Income Tax: Corporations & Partnerships True or False

    227072 Income Tax: Corporations & Partnerships True or False Can you help me understand this?

  • Finance: Exchange, Shareholder Loans, and Other Topics

    Partnerships and S Corporations: Not All Flow-through Entities are Created Equal. Value Examiner, 26-29. Burton, H. A. (2011). Current Developments in Partners and Partnerships. Tax Adviser, 42(2), 100-107.

  • Example C/S corporation

    Under section 469(I), C corporations are able to reclassified as nonpassive for rental income from a lease, and because Alice was leasing the rental property, any net rental income from the leased property resulted in material participation after exceeding

  • Corporate Income Taxes

    For Federal income tax purposes, however, taxation of S corporations resembles that of partnerships.

  • Types of entities, tax and legal advantages

    This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.

  • Uses of a Schedule E for tax reporting.

    There are other types of activity that report on page 2 of Schedule E including the taxpayer's percentage interest in the net activities of partnerships, S corporations, estates, trusts and other investment vehicles.

View More Related Solutions