Questions from Federal Taxation

Q: Under what circumstances, if any, can a married person file

Under what circumstances, if any, can a married person file as a head of household?

Q: Carl and Carol have salaries of $14,000 and $

Carl and Carol have salaries of $14,000 and $22,000, respectively. Their itemized deductions total $8,500. They are married and both are under age 65. a. Compute their taxable income assuming they fi...

Q: During 2017, Julio attended school for much of the year but

During 2017, Julio attended school for much of the year but was supported by his parents. Julio married Jillian in December 2017. Julio graduated and began working full-time in 2018. Jillian worked du...

Q: Nancy and the Minor Corporation own bonds of the East Corporation.

Nancy and the Minor Corporation own bonds of the East Corporation. Minor Corporation owns 80% of the stock of East Corporation. East Corporation has declared bankruptcy this year, and bondholders will...

Q: a. Explain the distinction between a deduction and a credit.

a. Explain the distinction between a deduction and a credit. b. Which is worth more, a $10 deduction or a $10 credit? c. Explain the difference between refundable and nonrefundable credits.

Q: Four years ago, Susan loaned $7,000 to her

Four years ago, Susan loaned $7,000 to her friend Joe. During the current year, the $7,000 loan is considered worthless. Explain how Susan should treat the worthless debt for tax purposes.

Q: Lisa and John are in the business of breeding beavers to produce

Lisa and John are in the business of breeding beavers to produce fur for sale. They recently purchased a pair of breeding beavers for $30,000 from XUN, Inc., and agreed to pay interest at 10% each yea...

Q: Which of the following constitutes constructive receipt in the current year ended

Which of the following constitutes constructive receipt in the current year ended December 31? a. A salary check received at 6:00 p.m. on December 31, after all the banks have closed. b. A rent check...

Q: In the following situations, indicate whether the taxpayer qualifies as a

In the following situations, indicate whether the taxpayer qualifies as a head of household. a. Allen is divorced from his wife. He maintains a household for himself and his dependent mother. b. Beth...

Q: List the conditions that must be met in order to claim a

List the conditions that must be met in order to claim a dependency exemption for qualifying children and qualifying relatives. Briefly explain each one.