it depends if its qualifying or non qualifying if it is non qualifying and it is traded on an exchange (readily accessible value) then you it taxed at grant. here its nonqualifying and we know the price so its taxed at grant
yeah but where is the 28,000 coming from? ive come to the conclusion that its 60,000 wages + 10,000 nonqualifying +13,000 bonus which brings us to 83,000. it says the basis in the bonus to the corp is 8,000 so i guess we have to add that 5,000 gain. all in all i probably would have guessed 88 through process of elimination
I am still reading those, there are a lot have no clue about. For example the rate on built in gain. In my notes it just says 35%
Or the one with Borasco Corp. owns land with a fair market value of $200,000. No idea what happens with assumed liability. I know if property is distributed as a dividend, liability reduces taxable income? basis?
still not sure why that married couple didn't have a taxable gift (question 10)
I understand the copyright issues with the 2015 released questions but I don't like that the correct answers are in bold. I don't wan to know the answer before I work the problem, especially if it is a conceptual question. The .pdf is so protected I can't do anything with it. I wanted to copy it to Word so I could “unbold' the answers but it won't even let me do that. Is there anything I can do to change this?
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