Ac553 Week 4 Paper

AC553: Federal Taxes and Management Decision Jan12 Sec. B crapweek 4: You Decide Assignment January 25, 2012 MEMORANDUM To: Mr. asshole smith and Mrs. Jane Smith From: Date: January 26, 2012 RE: 2011 Tax Strategy Dear wonderful and Jane, Thank you for the opportunity to work on your behalf for evaluate readying this form again. Per our last appointment, I have prep buttocks this memorandum as a preliminary work on this years revenue strategy. The three main sections argon constructed harmonise to inquiries made by each of you individually and, then, to argue on the options available for you some(prenominal) and my recommendation. beguile note that I use up that you wouldnt be planning to agitate the levy history method acting from cash method as I claver no reason to. 1(a): $300,000 income is enured as a ingredient of down-to-earth income from operation for tush this year. Please let me remind you that revenue implication of an LLC is quite antithetic from corporations. By default, LLCs are treated as pass-through entity which means that your steadfastly is disregarded in tax purpose and all gain and loss impart be passed down to the LLC owners (CCH, p14-4, IRS, p3) .

In this cheek, it is you ( assume that toilet Smiths devoted is a whiz-owner LLC) who impart be treating the firms profit and loss on Schedule C on your individual tax proceeds. (Again, assuming this this is a single-owner LLC. If not, it will be treated as a partnership and John Smith would be receiving K-1, reporting the segments divided make out of profit and loss.) Alternatively, LLC can take to be taxed as a corporation (either as C corporate, a signalize tax paying entity, or S corporation, a conduit entity) by filling out Form 8832 (IRS). This alternating(a) scenario is due to pas seul in pass on laws as to whether a single soul LLC can report on a byplay return or not. 1(b): The special $25,000 received as a reimbursement for the salt away expenses for this case results in no ratable income as taxation subtraction accumulated...If you want to get a full essay, auberge it on our website: Ordercustompaper.com

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