Questions from Federal Taxation

Q: Which of the following items can be inclusions in gross income?

Which of the following items can be inclusions in gross income? a. During the year, shares of stock that the taxpayer had purchased as an investment doubled in value. b. Amount an off-duty motorcycle...

Q: World War II converted the Federal income tax into a mass tax

World War II converted the Federal income tax into a mass tax. Explain bankruptcy.

Q: Brianna, a calendar year taxpayer, files her income tax return

Brianna, a calendar year taxpayer, files her income tax return for 2016 on February 3, 2017. Although she makes repeated inquiries, she does not receive her refund from the IRS until May 28, 2017. Is...

Q: Which of the following items can be exclusions from gross income?

Which of the following items can be exclusions from gross income? a. Alimony payments received. b. Award received by the taxpayer for compensatory damages from her broken leg. c. A new golf cart won i...

Q: Fran, who is in the 35% tax bracket, recently

Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried on her father. She currently owes $120,000 on her personal residence and $120,000 on business pr...

Q: On a Federal income tax return filed five years ago, Andy

On a Federal income tax return filed five years ago, Andy inadvertently omitted a large amount of gross income. a. Andy seeks your advice as to whether the IRS is barred from assessing additional inco...

Q: Late in the tax year, the Polks come to you for

Late in the tax year, the Polks come to you for tax advice. They are considering selling some stock investments for a loss and making a contribution to a traditional IRA. In reviewing their situation,...

Q: Isabella files her income tax return 35 days after the due date

Isabella files her income tax return 35 days after the due date of the return without obtaining an extension from the IRS. Along with the return, she remits a check for $40,000, which is the balance o...

Q: In choosing between the standard deduction and itemizing deductions from AGI,

In choosing between the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following variables have? a. The age of the taxpayer(s). b. The health (i.e., physic...

Q: For tax year 2014, the IRS assesses a deficiency against David

For tax year 2014, the IRS assesses a deficiency against David for $500,000. Disregarding the interest component, what is David’s penalty if the deficiency is attributable to: a. Negligence? b. Fraud?...