Questions from Federal Taxation

Q: Tim retired during the current year at age 58. He purchased

Tim retired during the current year at age 58. He purchased an annuity from American National Life Company for $40,000. The annuity pays Tim $500 per month for life. a. Compute Tim’s annual exclusion...

Q: Dan and Diana file a joint return. Dan earned $31

Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000. a. Determine the taxable portion of the Social Security...

Q: Lucia is a 69-year-old single individual who receives

Lucia is a 69-year-old single individual who receives a taxable pension of $10,000 per year and Social Security benefits of $7,000. Lucia is considering the possibility of selling stock she has owned...

Q: Bob is a single individual and received a salary of $27

Bob is a single individual and received a salary of $27,000 before he retired in October of this year. After he retired, he received Social Security benefits of $3,000 during the year. a. What amount...

Q: Amir, who is single, retired from his job this year

Amir, who is single, retired from his job this year. He received a salary of $25,000 for the portion of the year that he worked, tax-exempt interest of $3,000, and dividends from domestic corporations...

Q: Distinguish between taxpaying entities and flow through entities from the standpoint of

Distinguish between taxpaying entities and flow through entities from the standpoint of the federal income tax law.

Q: Why did the Supreme Court rule in Arkansas Best that the stock

Why did the Supreme Court rule in Arkansas Best that the stock of a corporation purchased by the taxpayer to protect the taxpayer’s business reputation was a capital asset?

Q: If property is sold at a loss to a related taxpayer,

If property is sold at a loss to a related taxpayer, under what circumstances can at least partial benefit be derived from the disallowed loss?

Q: What is the first day that an individual could sell a capital

What is the first day that an individual could sell a capital asset purchased on March 31, 2017 and have a holding period of more than one year?

Q: Juan and Maria, who have two young children, are in

Juan and Maria, who have two young children, are in the process of obtaining a divorce. Juan expects to have $200,000 of income each year while Maria expects to have $60,000 of income each year. Assum...