Questions from Federal Taxation

Q: John and Janet Baker are married and maintain a household in which

John and Janet Baker are married and maintain a household in which the following persons live: Calvin and Florence Carter and Darin, Andrea, and Morgan Baker. • Calvin and Florence are Janet’s parents...

Q: Kathy and Brett Ouray married in 1999. They began to experience

Kathy and Brett Ouray married in 1999. They began to experience marital difficulties in 2013 and, in the current year, although they are not legally separated, the couple considers themselves complete...

Q: On January 1, 2017, Kunto, a cash basis taxpayer

On January 1, 2017, Kunto, a cash basis taxpayer, pays $46,228 for a 24- month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No in...

Q: Bigham Corporation, an accrual basis calendar year taxpayer, sells its

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2017,...

Q: Simba and Zola are married but file separate returns. Simba received

Simba and Zola are married but file separate returns. Simba received $80,000 of salary and $1,200 of taxable dividends on stock he purchased in his name and paid from the salary that he earned since t...

Q: Casper and Cecile are divorced this year. As part of the

Casper and Cecile are divorced this year. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the dat...

Q: Interpret each of the following citations: a. Temp.

Interpret each of the following citations: a. Temp.Reg. § 1.956–2T. b. Rev.Rul. 2012–15, 2012–23 I.R.B. 975. c. Ltr.Rul. 200204051.

Q: Elizabeth made the following interest-free loans during the year.

Elizabeth made the following interest-free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal rate is 5% and that the loa...

Q: A taxpayer, age 64, purchases an annuity from an insurance

A taxpayer, age 64, purchases an annuity from an insurance company for $50,000. She is to receive $300 per month for life. Her life expectancy is 20.8 years from the annuity starting date. Assuming th...

Q: Compute the taxable Social Security benefits in each of the following situations

Compute the taxable Social Security benefits in each of the following situations: a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $46,000, no tax-exemp...