tax

Question 1

Joe Dock placed into service Section 179 property that cost $2,500,000. What is the maximum amount Joe can expense for 2013?

Answer 1

Zero

Question 2

If an S corporation election is revoked by the consent of shareholders,

Answer 2

the revocation may specify a revocation date that is on or after the date the revocation is filed (IRS Form 1120S Instructions).

Question 3

the revocation may specify a revocation date that is on or after the date the revocation is filed (IRS Form 1120S Instructions).

Answer 3

a vote of 50% of shares plus one share.

Question 4

Who must give consent to be treated as an S corporation

Answer 4

All Shareholder

Question 5

An entity who wishes to elect out of its default classification must use what IRS Form?

Answer 5

IRS Form 8832 (Entity Classification Election)

Question 6

A newly formed single member domestic limited liability company is eligible to file an election to be taxed as a:

Answer 6

corporation or a disregarded entity.

Question 7

How is a domestic LLC with at least two members classified for federal tax purposes? (The domestic LLC has not filed IRS Form 8832.)

Answer 7

Partnership

Question 8

On December 1, 2013, Jeff Weber placed in service office furniture (7-year life), which cost $25,000. Jeff did not elect Section 179 expensing. The office furniture was the only asset purchased during the year. What amount can Jeff claim as depreciation under MACRS for 2013?

Answer 8

Depreciation is $893 ($25,000 × 2/7 × 1.5/12).

Question 9

First-year depreciation under MACRS is based on

Answer 9

double-declining balance