Posted: December 9th, 2022
Musyokiones essay
Identify Tax Issues
Information:
Identify at least two main tax issues suggested for each of the scenarios described below:
Wheelie Corporation is a calendar year taxpayer. For the past nine years its taxable income has been stable, averaging $2 million per year. Through November of this year, the taxable income was $1.81 million. In April, June and September, Wheelie made a $175,000 installment payment of tax. In December, it recognized a $5 million gain on the sale of investment land.
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Aloha Inc. sells timeshares in Hawaii. Gerry buys timeshare from Aloha Inc,. He agrees to pay $10,000 down and Aloha Inc. will finance a seven year note for the balance of the purchase price at the current market rate of interest. Identify the issues for Aloha Inc.
Instructions:
Your answers should be phrased in the form of a question. Do not answer the questions. A complete submission should include at least four questions in total.
Note that the questions you pose should be question that can only be answered by conducting tax research such as reviewing the tax code or case law. It should not be a question of fact that can be answered by asking the client or reviewing the transaction documents.