Questions from Federal Taxation

Q: Assume the same facts as in Problem I: 7-35

Assume the same facts as in Problem I: 7-35. In addition, assume that in 2018, Angela receives an additional $7,000 in a settlement of a lawsuit arising because of the snow-skiing accident. $4,000 of...

Q: Dan lives in Duncan, a small town in Arizona. Because

Dan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments are available to Dan...

Q: Chad is divorced and has custody of Brett, his 14-

Chad is divorced and has custody of Brett, his 14-year-old son. Chad’s ex-wife has custody of their daughter, Sara. During the year, Chad incurs $3,000 for orthodontic work for Sara to correct a sever...

Q: In 2017, Charla, a single taxpayer with no dependents,

In 2017, Charla, a single taxpayer with no dependents, was severely hurt in a farm accident. Charla is 38 years old. The accident left Charla’s legs 85% paralyzed. After incurring $14,000 of medical e...

Q: Joyce is a single, cash-method taxpayer. On April

Joyce is a single, cash-method taxpayer. On April 11, 2016, Joyce paid $120 in state income taxes with her 2015 state income tax return. During 2016, Joyce had $1,600 in state income taxes withheld. O...

Q: : Steve is part owner and manager of a small manufacturing company

Steve is part owner and manager of a small manufacturing company that makes keypads for alarm systems. The keypads are sold to several different alarm companies throughout the country. Steve must tra...

Q: Assume the same facts as Problem I: 7-40,

Assume the same facts as Problem I: 7-40, but change the amount of Joyce’s mortgage interest to $3,000. a. What is her taxable income for 2017? b. What is her AGI for 2018? Problem 7-40: Joyce is a...

Q: Dawn, a single, cash-method taxpayer, paid the

Dawn, a single, cash-method taxpayer, paid the following taxes in the current year: Dawn’s employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for FICA from he...

Q: If an NOL is carried back to a prior year, what

If an NOL is carried back to a prior year, what adjustments must be made to the prior year’s taxable income? What are the possible results of the adjustments?

Q: In the current year Ned completely destroys his personal automobile (purchased

In the current year Ned completely destroys his personal automobile (purchased two years earlier for $28,000) in a traffic accident. Fortunately none of the occupants are injured. The FMV of the car b...