Week 4 You Decide Activity 1

| The partners are jointly and severally liable for business debts and obligations. The partners are held personally responsible for the business and may be sued personally for liability. Partners’ personal assets are subject to lawsuit(s) made against the business. Lack of continuity; death of a partner may end the partnership/business if a buy/sell agreement is not in place. Disagreements may be difficult to resolve.

Starting your own shop is a great way to earn money because mainly all of the money comes to you and you really do not have to work full time.

d) If your hobby activity produces income, you owe tax on it. And if your hobby activity keeps bringing in income over years, you will have tax benefits to set up a separate business for the activity because you can deduct ordinary and necessary expenses from the income to lower your taxable income. When you have loss, you can also use it as a tax shelter to reduce your overall gross income (if you have other income sources).

In summary, the only tax advantage of selling the old house is that a larger deduction of mortgage interest on the new home. Paying off a mortgage associated with a primary residence has no impact on calculation of gain or loss, it simply reduces the otherwise deductible mortgage interest. You should have mentioned that under IRC 163 the $1M principal balance limitation to fully deducting interest and that they can deduct interest on their primary residence and one other residence.

When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as

Well that’s not the way things go with the Indian people. Selling their homemade stuff is something they live for. Sometimes it’s the only way people make their living, feed their families, put clothes on their children’s back, or just basically survive. I for one, come from a family of Jewelry makers, and fetish carvers. Seeing my family make jewelry was always so interesting but when it came to sell, it was hard. Zuni is a very small community with very little businesses so most time we have to travel to Gallup to sell stuff, but even though Gallup is full of businesses, there is a lot of them that will turn down your jewelry or try to make your price very low, and if your desperate enough, you negotiate with the buyer on the selling price. If you are not looking to sell at such a low price, you must drive all around Gallup to find a buyer that will give you decent sell. Yes, it is true as it says in the poem “We bargain back and forth with tourists and among ourselves… we must love to bargain”. I think the biggest reason why people don’t give selling their items is because that is the only way they know how to financially support their family. They might not have anything else such as no high school diploma, no working experience, and no skills that would help them obtain a job that will help them be better financially supported. I look up to

Specifically, one of the first decisions that Ms. Growne should make, is whether she wants to acquire the assets of the tavern or the stock/interests in the business

Thanks to their trained eye and keen attention to detail, their jewelry connoisseurs can easily distinguish real metal and gems from their fake counterparts. At Central Texas Gun & Pawn, for example, every jewelry piece is thoroughly assessed before providing customers with a detailed appraisal of estimated value. Anytime you want to sell watches, necklaces, or bracelets, trust this local pawn business to give you top value for your prized possessions.

Have you ever picked out an entire outfit and then realized that you don’t have any jewelry to go with it? You went to the jewelry stores but there is nothing to be found there. Finally the idea to make your own jewelry pops in your head but unfortunately you have no idea how to do that or what you want. Maybe you want an elegant style bracelet like the Byzantines used to wear. It’s very simple to make one, all you need is a few materials and time.

You can’t fine any women who didn’t love jewelry. So this is a significant gift item for through about. If you not have any past experience for buying women jewelry, then we can assist you.

Require a signed confidentiality/non-disclosure agreement with the partners ( we need to still check on the details around this one).

2a). What are the difference tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes?

According to the Code Section labeled “Expenses for production of income”, an individual can deduct expenses that are normal and needed during the taxable year that relate to being able to make/collect income, keeping a property in acceptable condition that is held to make income, and the procedure for figuring out anything relating to the amount of taxes owed/overpaid. The discussion of miscellaneous itemized deductions is broken down into three areas. There are certain deductions that have a 2% floor, others that don’t have the floor, and then there are expenses that can’t be deducted at all. Overall the deductions have to do with performing your job better/with better resources, getting a new job, or money spent on items needed in order to do your job. There are other expenses that can be deducted which don’t fit in to those categories, but those are the crux.

Taking the owners backgrounds into consideration, a limited liability company would be a better idea. When forming a limited liability company, they would have to file an article of organization with the secretary of state but the company would still be structured as a partnership. Main advantage would be that the owners are not personally liable

Activities are classified in terms of a business or a hobby and it is important that the two are separated. The difference depends on whether the activity is being carried for tax purposes or not. It is of great importance for the taxpayer to take into a consideration whether an activity they are involved in is for commercial purposes or whether it is situated in an environment suitable for carrying out business. Individuals have different professions which they actively do and devote much of their time and resources in doing which generate some taxable income. Engaging in another activity on the side whether in a small scale but with a profit motive or with an intension that profits will be generate from such an activity qualifies it as a business (Braedon Clark DR, 2004).