Question

QUESTION 16

1. One of your tax clients has asked you a question about terminating his partnership interest. All of the following may result in the termination of a partnership interest, except:

		Retirement by a partner
		Death of a partner
		Sale of partnership interest
		Divorce and remarriage of partner

5 points   

QUESTION 17

1. All of the following are wealth planning tools except

		carry over trusts
		family limited partnerships
		generation skipping tax
		serial gifts

5 points   

QUESTION 18

1. Which of the following business entities is subject to double taxation?

		"C” Corporation
		Partnership
		"S" Corporation
		Sole Proprietorship

5 points   

QUESTION 19

1. In regard to choosing a tax year for a retail business owned by individuals, which form of business provides the greater number of options in regard to the tax year?

		The C Corporation
		The limited liability company
		The partnership
		The S corporation

5 points   

QUESTION 20

1. If an "S" corporation makes a distribution of earnings and profits to its shareholders, the distribution is most likely:

		a non-taxable dividend
		a non-taxable return of capital
		a stock split
		a taxable dividend

Answer 1

16. Retirement by apartner, death of partner and sale of partnership interest terminating the partnership interest except divorce and remarriage of a partner.

17.Carrying over trust

18. C corporation business entities is subject to double taxation

19. LLP

20. Non taxable dividend