Questions from Federal Taxation

Q: Pedro Bourbone is the founder and owner of a highly successful small

Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His port-folio of stocks and bo...

Q: Anya is concerned that she will be audited by the IRS.

Anya is concerned that she will be audited by the IRS. a. Under what circumstances is it possible that the IRS will review each line item on her tax return? b. Is it likely that all items on Anya’s...

Q: Congressional committee reports are an important source of information concerning the legislative

Congressional committee reports are an important source of information concerning the legislative enactment of tax law. a. Name the three Congressional committee reports that are issued in connection...

Q: Carmen has computed that her average tax rate is 16% and

Carmen has computed that her average tax rate is 16% and her marginal tax rate is 25% for the current year. She is considering whether to make a charitable contribution to her church before the end of...

Q: For each of the following items, indicate whether the individual taxpayer

For each of the following items, indicate whether the individual taxpayer must include any amount in gross income. a. Employees of Eastside Bookstore are given their birthdays off with pay. b. Wests...

Q: Rick Cabela, a high income client, has contacted you for

Rick Cabela, a high income client, has contacted you for advice regarding two new proposed business ventures and other tax planning ideas. Rick already operates a highly successful consulting business...

Q: Read the following two cases and explain why the Supreme Court reached

Read the following two cases and explain why the Supreme Court reached different conclusions for cases involving similar facts and issues: • CIR v. Court Holding Co., 33 AFTR 593, 45-1 USTC ¶9215 (US...

Q: Michelle pays a CPA $400 for the preparation of her federal

Michelle pays a CPA $400 for the preparation of her federal income tax return. Michelle’s only sources of income are her salary from employment and interest and dividends from her investments. a. Is...

Q: Can tax-exempt income qualify as support? Explain.

Can tax-exempt income qualify as support? Explain.

Q: When is the transferor of a franchise unable to treat the transfer

When is the transferor of a franchise unable to treat the transfer as a sale or an exchange of a capital asset?