Questions from Federal Taxation

Q: Cecil C. Seymour is a 64-year-old widower

Cecil C. Seymour is a 64-year-old widower. He had income for 2017 as follows: Pension from former employer………………………………………………………………………..$39,850 Interest income from Alto National Bank……………………………………………...

Q: Daniel B. Butler and Freida C. Butler, husband and

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan’s Social Security number is 111-11-1112, and...

Q: An employer provides all of his employees with life insurance protection equal

An employer provides all of his employees with life insurance protection equal to twice the employee’s annual salary. Melba, age 42, has an annual salary of $70,000. Is Melba required to recognize inc...

Q: According to the Supreme Court, would it be good tax policy

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Q: Allen visits Reno, Nevada, once a year to gamble.

Allen visits Reno, Nevada, once a year to gamble. This year his gambling loss was $25,000. He commented to you, “At least I didn’t have to pay for my airfare and hotel room. The casino paid that becau...

Q: Howard buys wrecked cars and stores them on his property. Recently

Howard buys wrecked cars and stores them on his property. Recently, he purchased a 1990 Ford Taurus for $400. If he can sell all of the usable parts, his total proceeds from the Taurus will be over $2...

Q: What is the purpose of the constructive receipt doctrine?

What is the purpose of the constructive receipt doctrine?

Q: Several years ago Ethan purchased the former parsonage of St. James

Several years ago Ethan purchased the former parsonage of St. James Church to use as a personal residence. To date, Ethan has not received any ad valorem property tax bills from either the city or the...

Q: A Series EE U.S. government savings bond accrues 3

A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3....

Q: Wade paid $7,000 for an automobile that needed substantial

Wade paid $7,000 for an automobile that needed substantial repairs. He worked nights and weekends to restore the car and spent $2,400 on parts for it. He knows that he can sell the car for $13,000, bu...