Questions from Federal Taxation


Q: Jan, a single taxpayer, has adjusted gross income of $

Jan, a single taxpayer, has adjusted gross income of $250,000, medical expenses of $10,000, home mortgage interest of $3,000, property taxes of $2,000. and miscellaneous itemized deductions of $3,500....

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Q: Debbie is 23 years old, a full-time student and

Debbie is 23 years old, a full-time student and a dependent of her parents. She earns $4,200 working part-time and receives $2,200 interest on savings. She saves both the salary and interest. What is...

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Q: John and Georgia are a married couple with two dependent sons.

John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax exempt interest income of $1,000. They paid home mortgage inter...

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Q: Mike and Linda are a married couple who file jointly. They

Mike and Linda are a married couple who file jointly. They have three dependent children who are full-time students in 2017. Mike and Linda’s taxable income is $180,000 and they prov...

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Q: Georgia, a single taxpayer, operates a business that produces $

Georgia, a single taxpayer, operates a business that produces $100,000 of income before any amounts are paid to her. She has no dependents and no other income. She has itemized deductions of $18,000....

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Q: Bob and Anna are in the 39.6% tax bracket

Bob and Anna are in the 39.6% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owned s...

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Q: Virginia is a cash-basis, calendar-year taxpayer.

Virginia is a cash-basis, calendar-year taxpayer. Her salary is $20,000, and she is single. She plans to purchase a residence in 2018. She anticipates her property taxes and interest will total $7,200...

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Q: Maria is a single taxpayer. Her salary is $51,

Maria is a single taxpayer. Her salary is $51,000. Maria realized a short-term capital loss of $5,000. Her itemized deductions total $4,000. a. Compute Maria’s adjusted gross income. b. Compute her t...

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Q: Ralph and Tina (husband and wife) transferred corporate bonds worth

Ralph and Tina (husband and wife) transferred corporate bonds worth $30,000 to Pam, their 12-year-old daughter. Pam received $3,500 of interest on the bonds in the current year. Ralph and Tina file jo...

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Q: Carolyn operates a consulting business as a sole proprietor (unincorporated).

Carolyn operates a consulting business as a sole proprietor (unincorporated). Carolyn has been approached by one of her major clients to become an employee. If she accepts the new job, she would no lo...

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