Hypothetical Fact Patterns

• Author: Jack Zuckerman
• Pages: xi-xi

HYPOTHETICAL

FACT PAT T E R N S

xi

Hypothetical fact patterns for corporations, part-

nerships, and un incorporated businesses are

presented to provide an overv iew of typical tax

reporting for commerc ial businesse s and profes-

sional practice s. Included are tax ret urns for two

unincor porated business es, two types of pa rtner-

ships, and thre e types of cor porations.

The hypothetical u nincorporate d business

reported on the S chedule C of the personal income

tax return:

• A sole practitioner, and

• A business involved in product sales.

Partnership hypothetical tax returns:

• A real estate limited partnership, and

• A service-oriented business.

Corporate hypothetical tax returns:

•

A service-oriented business (“loan-out

corporation”),

•

A “C” Corporation for a business involved in

product sales, and

•

An “S” Corporation involved in product sales.

The extensive variety of exa mples provided in

the above mentioned hypothetical situations will

cover many of the most common scenarios law-

yers will con front in actua l practice. Hopefully, the

observations and explanations in the text and the

accompanying hyp othetical t ax returns will prove

invaluable to lawyers who wish to gain a greater

understandi ng of business tax retu rns.