Tax memo

Tax issues

1. How can tax shield be used as a financial strategy to minimize the amount of taxable income for Wheelie Corporation?
2. Will the gain from sales of investment land be considered an income? Can the Wheelie Corporation claim exclusion of capital gains to minimize its capital gains liability?

• What are the principles behind the various timeshare tax deductions that Aloha Inc. can claim?

1. When can Aloha Inc. claim deduction on the timeshare interest expense?
2. Does the loan taken by Aloha Inc. (seven year note) to pay for the timeshares deductible?