Questions from Federal Taxation

Q: During the year (not a leap year), Anna rented her

During the year (not a leap year), Anna rented her vacation home for 30 days, used it personally for 20 days, and left it vacant for 315 days. She had the following income and expenses: Rent income……...

Q: How would your answer to Problem 48 differ if Anna had rented

How would your answer to Problem 48 differ if Anna had rented the house for 87 days and had used it personally for 13 days?

Q: The Grays live in Clay County, which is adjacent to Jackson

The Grays live in Clay County, which is adjacent to Jackson County. Although the retail stores in both counties are comparable, the Grays usually drive a few extra miles to shop in Jackson County. As...

Q: Chee, single, age 40, had the following income and

Chee, single, age 40, had the following income and expenses during 2017: Income Salary……………………………………………………………………………………………$43,000 Rental of vacation home (rented 60 days, used personally 60 days, vaca...

Q: Elisa and Clyde operate a retail sports memorabilia shop. For the

Elisa and Clyde operate a retail sports memorabilia shop. For the current year, sales revenue is $55,000 and expenses are as follows: Cost of goods sold……………………………. $21,000 Advertising………………………………………...

Q: Tonya, who lives in California, inherited a $100,

Tonya, who lives in California, inherited a $100,000 State of California bond in 2017. Her marginal Federal tax rate is 35%, and her marginal state tax rate is 5%. The California bond pays 3.3% intere...

Q: Brittany Callihan sold stock (basis of $184,000)

Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax consequences to Brittany? b. What are the tax consequences to Ridge if he l...

Q: The Robin Corporation is owned as follows: Isabelle……………………………………………………………….

The Robin Corporation is owned as follows: Isabelle……………………………………………………………….26% Peter, Isabelle’s husband……………………………………..19% Sonya, Isabelle’s mother………………………………………15% Reggie, Isabelle’s father………………...

Q: For each of the following independent transactions, calculate the recognized gain

For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer. a. Bonnie sells Parchment, Inc. stock (adjusted basis $17,0...

Q: Sarah was contemplating making a contribution to her traditional IRA in 2016

Sarah was contemplating making a contribution to her traditional IRA in 2016. She determined that she would contribute $5,000 in December 2016, but forgot about making the contribution until she was p...