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kompoz [17]
3 years ago
15

6. Explain how liabilities of an LLC (taxed as a partnership) or an S corporation affect the amount of tax losses from the entit

y that limited liability company members and S corporation shareholders may deduct. Do the tax rules favor LLCs or S corporations?
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer:

LLC liabilities are included as part of member's tax basis while S corporation liabilities are not.

Tax rules favors LLCs.

Explanation:

LLC liabilities are included as part of a member's tax basis while S corporation liabilities are not included in an S corporation shareholder's tax basis other than loans from the shareholders.

This distinction is important because the amount of loss a member or shareholder may deduct is limited to his or her tax basis in either his or her LLC interest or shares. Thus in this particular regard Tax rules favors LLCs.

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The price of food is rising fast! how might this situation be handled in a…
Pani-rosa [81]
A free market economy is when the prices of supply and demand are free from the government. Meaning they can charge whatever they want and the government has to say. So answering your question they can just charge less if they felt like it since they have free reins of the prices.

A command economy is the opposite whereas supply and demand prices are determined by the government and the government only. The government would probably not change the prices because the government sucks.

(A mixed economy is the best way to achieve that)

4 0
3 years ago
Mike organizes a group of students upset over the food selection in the cafeteria. He assigns times for students to stand in the
alukav5142 [94]

Answer:

interest group

Explanation:

Based on the information provided within the question it can be said that this is an example of an interest group. This term refers to group of individuals that share a common interest and because of it work in unison in order to influence the government so that they promote and protect that interest. Which in this scenario the group's main interest is on the food selection in the cafeteria, and are working together to influence the organizational entity to change it.

3 0
3 years ago
describe the two eligibility requirements to qualify for deducting losses generated from real estate activities.
Zolol [24]

Two exceptions to the special passive activity rule for real estate activities provide the whole or partial offset of real estate rental losses against active or portfolio income, even when the business is otherwise regarded as a passive activity.

<h3>Which rules regarding passive activities for rental revenue are exceptions?</h3>
  • You have a stake in the yearly commerce or economic activities.
  • During the current tax year or at least 2 of the 5 tax years prior, the rental property was utilized primarily in that trade or company.
<h3>Only real estate is subject to passive loss restrictions, right?</h3>

Generally speaking, the following actions can result in passive losses (and income): leasing of equipment. Rental property (though there are some exceptions) a farm or a sole proprietorship in which the taxpayer has no substantial interest.

<h3>How can passive income be balanced?</h3>

Selling off your rental properties will help you make up for your passive losses. You don't actually have to sell the property that's causing the losses to balance them effectively. Any passive income will be offset by losses.

Learn more about special passive activity rule: brainly.com/question/28137310

#SPJ4

7 0
11 months ago
Deluxe Company has the following information: Total estimated manufacturing overhead costs $300,000 Total estimated machine hour
cluponka [151]

Answer:

its a formula, however long the machine is running the manufacturing rate will be higher thus increasing their income

Explanation:

7 0
3 years ago
Sheridan Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo
Artist 52 [7]

Answer:

A. The cost of asset being depreciated is $57,000

B.The amount of salvage value is $5,700

Explanation:

Among the above-mentioned methods of depreciation, the only method that never consider salvage value on its computation of depreciation expense is the double declining method. So let’s use this method to work back the exact amount depreciable amount of an asset.

Formula : 100% / life of an asset x 2

100% / 5 x 2 = 40%

Y1 = $22,800/40 = 57,000

so to check if the amount is correct, let’s do the computation of 5-year depreciation.

Y1 57,000 x 40% = 22,800 (same as the given data)

Y2 (57,000 - 22,800) x 40% =13,680

Y3 (57,000 - 22,800 - 13,680) x 40% = 8,208

Y4 (57,000-22,800 - 13,680 - 8,208) x 40% = 4,925

Y5 (57,000 -22,800 - 13,680 - 8,208 - 4,925) x 40% = 1,687* (adjusted based on the depreciable amount)

B. To compute the salvage value, we simply deduct the total depreciation from the cost of an asset.

57,000 - 51,300 = 5,700

To check:

(57,000 - 5,700) / 5 years = 10,260

8 0
3 years ago
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