Virginia gave stock with an adjusted basis of $ 8,000 and an FMV of $ 10,000 to Carmen . No gift tax was paid on the transfer . Carmen then sold the stock for $ 9,000 . The gain or loss Carmen will recognize on the sale is
Question 5
If a partnership chooses to form an LLC , under the check-the-box rules , and assuming no elections are made , the entity will be taxed as
Question 6 Revocable trusts means Question 7 Identify which of the following statements is true . Question 8 Identify which of the following statements is true . Question 9
Cactus Corporation , an S Corporation , had accumulated earnings and profits of $ 100,000 at the beginning of 2009 . Tex and Shirley each own 50 % of the stock and have a basis in their stock of $ 50,000 on January 1 , 2009 . Cactus does not make any distributions during 2009 , but had $ 200,000 of ordinary income . In 2010 , ordinary income was $ 100,000 and distributions were $ 100,000 . What is Tex ' s basis at January 1 , 2011 ?
Question 10
Tax return preparers can be penalized for the following activities except
Question 11 An intervivos trust may be created by all of the following except