Hypothetical Fact Patterns

• Author: Jack Zuckerman
• Pages: xi-xi

HYPOTHETICAL

FACT PATTERNS

xi

Hypothetical fact patterns for corporations, part-

nerships, and unincorporated businesses are

presented to provide an overview of typical tax

reporting for commercial businesses and profes-

sional practices. Included are tax returns for two

unincorporated businesses, two types of partner-

ships, and three types of corporations.

The hypothetical unincorporated 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 examples 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

understanding of business tax returns.