Questions from Federal Taxation

Q: Cathy, who is single, makes gifts of $50,

Cathy, who is single, makes gifts of $50,000 to each of her two adult children. a. Who is primarily liable for the gift tax on the two gifts, Cathy or the two children? b. If Cathy has never made a...

Q: Which of the following taxpayers must file a 2017 return?

Which of the following taxpayers must file a 2017 return? a. Amy, age 19 and single, has $8,050 of wages, $800 of interest, and $350 of self- employment income. b. Betty, age 67 and single, has a ta...

Q: Carmen and Carlos, who have filed joint tax returns for several

Carmen and Carlos, who have filed joint tax returns for several years, separated this year. Carlos works in construction and is often paid in cash. Carlos says he only worked a few weeks this year and...

Q: Jane and Bill have lived in a home Bill inherited from his

Jane and Bill have lived in a home Bill inherited from his parents. Their son Jim lives with them. Bill and Jane obtain a divorce during the current year. Under the terms of the divorce, Jane receives...

Q: This year, Yung Tseng, a U.S. citizen

This year, Yung Tseng, a U.S. citizen, supported his nephew who is attending school in the United States. Yung is a U.S. citizen, but his nephew is a citizen of Hong Kong. The nephew has a student vis...

Q: Gail is a wealthy widow whose husband died last year. Her

Gail is a wealthy widow whose husband died last year. Her dependent daughter lives with her for the entire year. Gail has interest income totaling $382,400 and she pays property taxes and home mortgag...

Q: The following information relates to two married couples: /

The following information relates to two married couples: Compute the 2017 tax due or refund due for each couple. Assume that the itemized deductions have been reduced by the applicable floors. Ignore...

Q: Sylvia, a dentist with excellent skills as a carpenter, started

Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from Afghanistan, where he is serving in...

Q: How does a lessor treat payments received for canceling a lease?

How does a lessor treat payments received for canceling a lease?

Q: Under the related party rules of Sec. 267, why has

Under the related party rules of Sec. 267, why has Congress imposed the concept of constructive ownership?