Jerry made the following contributions during 2010

Jerry made the following contributions during 2010:

His synagogue (by check) $680
The Republican Party (by check) 180
The American Red Cross (by check) 150
His lodge for a holiday party 100

In addition, Jerry donated used furniture to the Salvation Army costing $2,000 with a fair market value of $400. Assuming Jerry has adjusted gross income of $45,000, has the necessary written acknowledgments, and itemizes deductions. Complete the Gifts to Charity section of Schedule A, what is Jerry’s deduction for 2010.


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Jerry transfers property having a $32,000 adjusted basis and a $50,000 FMV to Emerald Corporation in exchange for all of Emerald’s stock

C:2-44. Jerry transfers property having a $32,000 adjusted basis and a $50,000 FMV to Emerald Corporation in exchange for all of Emerald’s stock worth $15,000 and Emerald’s assumption of a $35,000 mortgage on the property.

a. What is the amount of Jerry’s recognized gain or loss?
b. What is Jerry’s basis in the Emerald stock?
c. What is Emerald’s basis in the property?
d. How would your answers to Parts a through c change if the mortgage assumed by Emerald were $15,000 and the Emerald stock were worth $35,000?


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Ben and Jerry organize their new entity as an LLC on May 16th of the year 1

Problem 2-1 Ben and Jerry organize their new entity as an LLC on May 16th of the year 1. What is the default tax classification for this entity? Are there any alternative classification(s) available? If so, how do Ben and Jerry elect one of these alternate classification(s) and what are the tax consequences of doing so?

Click here for the solution: Ben and Jerry organize their new entity as an LLC on May 16th of the year 1