Questions from Federal Taxation

Q: What is meant by the term petitioner?

What is meant by the term petitioner?

Q: Trevor, a friend of yours from high school, works as

Trevor, a friend of yours from high school, works as a server at the ST Cafe. He asks you to help him prepare his Federal income tax return. When you inquire about why his bank deposits substantially...

Q: Amber, a publicly held corporation, currently pays its president an

Amber, a publicly held corporation, currently pays its president an annual salary of $900,000. In addition, it contributes $20,000 annually to a defined contribution pension plan for him. As a means o...

Q: Nancy, the owner of a very successful hotel chain in the

Nancy, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $35,000 of expenses associated with thi...

Q: In January 2017, Ezra purchased 2,000 shares of Gold

In January 2017, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In D...

Q: Terry traveled to a neighboring state to investigate the purchase of two

Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurre...

Q: Alex, who is single, conducts an activity in 2017 that

Alex, who is single, conducts an activity in 2017 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue……………………………………………..$18,000 Property ta...

Q: Samantha, an executive, has AGI of $100,000

Samantha, an executive, has AGI of $100,000 before considering income or loss from her miniature horse business. Her outside income comes from prizes for winning horse shows, stud fees, and sales of y...

Q: Sarah owns a vacation cabin in the Tennessee mountains. Without considering

Sarah owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it hersel...

Q: Adelene, who lives in a winter resort area, rented her

Adelene, who lives in a winter resort area, rented her personal residence for 14 days while she was visiting Brussels. Rent income was $5,000. Related expenses for the year were as follows: Real prop...