Discussion Question 1
• What limitations exist on the deductibility of executive compensation?
• Do they apply to all business entities?
• Are there any exceptions to the limitations? Explain.
Discussion Question 2
• From a tax perspective, explain the advantages and disadvantages of the partnership form of business. What are the differences among limited liability partnership (LLP), limited partnership (LP), and general partnership?
• A taxpayer contributes $1,000 into a limited partnership. At the end of the partnership tax year, the taxpayer's pro-rata share of the loss is $2,000. Ignoring passive activity rules, what is the taxpayer's at risk amount? Explain.