Questions from Federal Taxation

Q: Kaitlin donated a painting to the local art museum. As she

Kaitlin donated a painting to the local art museum. As she is subject to a 35% marginal tax rate, she needs a large charitable contribution deduction for the year. She engaged Vargas (who was referred...

Q: Trudy’s AGI last year was $200,000. Her Federal

Trudy’s AGI last year was $200,000. Her Federal income tax came to $65,000, which she paid through a combination of withholding and estimated payments. This year, her AGI will be $300,000, with a proj...

Q: Kold Services Corporation estimates that its 2017 taxable income will be $

Kold Services Corporation estimates that its 2017 taxable income will be $500,000. Thus, it is subject to a flat 34% income tax rate and incurs a $170,000 liability. For each of the following independ...

Q: The Leake Company, owned equally by Jacquie (chair of the

The Leake Company, owned equally by Jacquie (chair of the board of directors) and Jeff (company president), is in very difficult financial straits. Last month, Jeff used the $300,000 withheld from emp...

Q: Jane filed her 2016 Form 1040 on April 4, 2017.

Jane filed her 2016 Form 1040 on April 4, 2017. What is the date on which the applicable statute of limitations expires in each of the following independent situations? a. Jane incurred a bad debt los...

Q: Loraine (a calendar year taxpayer) reported the following transactions,

Loraine (a calendar year taxpayer) reported the following transactions, all of which were properly included in a timely filed return. a. Presuming the absence of fraud, how much of an omission from...

Q: On April 3, 2015, Luis filed his 2014 income tax

On April 3, 2015, Luis filed his 2014 income tax return, which showed a tax due of $75,000. On June 1, 2017, he filed an amended return for 2014 that showed an additional tax of $10,000. Luis paid the...

Q: Rod’s Federal income tax returns (Form 1040) for the indicated

Rod’s Federal income tax returns (Form 1040) for the indicated years were prepared by the following persons. Year Preparer 1……………………………………………Rod 2……………………………...

Q: Christie is the preparer of the Form 1120 for Yostern Corporation.

Christie is the preparer of the Form 1120 for Yostern Corporation. On the return, Yostern claimed a deduction that the IRS later disallowed on audit. Compute the tax preparer penalty that could be ass...

Q: Discuss which penalties, if any, might be imposed on the

Discuss which penalties, if any, might be imposed on the tax adviser in each of the following independent circumstances. In this regard, assume that the tax adviser: a. Suggested to the client various...