Tax HomeworkKeisha N, Haynes To: juhe188@gmail,com-11-ficrrange-in-crrderhowl-numbiarttrer-p-ages2,...

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Tax HomeworkKeisha N, Haynes  To: juhe188@gmail,com-11-ficrrange-in-crrderhowl-numbiarttrer-p-ages2, Do S Corp return on first page at the bottom - Dana Mitchell3. Answer the following question: What do you think of this business and should it be an S-Corp? if not, what type of entity you think it should be and why?Whether or not you think the graduate program Is preparing you for the job you want to d and what is that job?What would you do to make the class more interesting? 4. On Page 4, pick any 3 of the research problems and answer them Everything should not be too lengthy, state you point; a good paragraph. Then email everything as a PDF file and put the subject YOURLASINAME/ACCT?'107X XXXXXXXXXX,pdf 133K'Thu, Dec 13, 2012 at 11;02 AM

David · Accepted Answer

SOLUTION 1 
Under Section 1372 of the Code, S corporations are treated as partnerships with respect to fringe 
benefits  and their 2% shareholders are treated as partners with respect to such benefits. I.R.C. 
Section 1372(a). The value of fringe benefits provided to a partner as a partner is generally 
treated as a guaranteed payment includible in the gross income of the partner and deductible by 
the partnership as an ordinary and necessary business expense. Similarly, the value of fringe 
benefits provided to a 2-percent S corporation shareholder is includible in the gross income of 
the shareholder and deductible by the S corporation as an ordinary and necessary business 
expense. 
The Code and Treasury Regulations provide little guidance on the scope of the phrase "fringe 
benefits" for the purposes of Section 1372. The Subchapter S Revision Act of 1982 Committee 
Report, see Senate Report No. 97-640, however, indicates that the term would be limited to only 
those benefits that would be available to a corporation in C status. In other words, statutory 
fringes, e.g., death benefits, health insurance, certain group term life insurance payment, and 
other fringe benefits available only to C corporations would come within the meaning of "fringe 
benefits" for the purposes of Section 1372. The term "fringe benefits" would appear to not 
include such benefits as contributions made by an employer to an employee's qualified 
retirement plan because qualified plans are available to both C and S corporations.
SOLUTION 3 
Beecher Inc. will be considered to be of corporate status. Conversion of S corporations into 
LLC, will not be tax free and following is the law provisions relating to the transaction -: 
The S corporation provisions of the Code treat S corporations as flow-through entities, similar to 
partnerships.  However, in certain circumstances, subchapter C provisions also apply to S 
corporations.  One of such circumstances is the liquidation of the S corporation.

Tax Homework Keisha N, Haynes To: juhe188@gmail,com -11-ficrrange-in-crrderhowl-numbiarttrer-p-ages 2, Do S Corp return on first page at the bottom - Dana Mitchell 3. Answer the following question:...

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