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April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to dissertate some questions and doable outcomes about voltage future pecuniary investment decisions, and the tax incomeation ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the barter for of a manufacturing comp each Smithton Widgets which is actually profitable. Mr. Jones is a majority shareholder in another C-Corp. cognise in this case as Johnson manoeuvre which has accumulated meaning(a) losses. Issues: 1.Outstanding leverage of stock (a)Mr. Jones would like to hump if he should purchase the stock of Smithton outright, leaving Smithton intact. He also wants to know if he issues debt in his Johnson serve to pay for the Smith fraternity would that tramp debt to equity issues (b)Mr. Jones also wanted to know should he commute S mithton to an S Corporation and change the fiscal year to a calendar year. (c)Mr. Jones also asked what are the potential tax ramifications that hold out for Mr. Jones personally if he purchases the stock of Smithton and converts it to an S- Corporation.? (d)Mr. Jones asked should he merge with Johnson Services with Smithton, and what type of merger would be best. 2.

unification or acquisition (a)If the deuce companies are merged, could Smithton use Johnson Services engagement operating loss lend forwards? Any limitations on their use? (b)Should Mr. Jones use Johnson Services stock to acquire Smithton? wher efore or why not? (c)Would a merger or acqu! isition affect Mr. Jones big businessman to change Smithsons fiscal year-end to a calendar year-end? Could Smithton be converted to an S corporation? (d)Does the potential of significant capital letter investment in Smithton affect any of your answers for 2(a)-(c) above? endpoint: 1. (a)I recommend that Mr. Jones dont purchase the stock of Smithton outright. If Mr. Jones did purchase this...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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