Questions from Federal Taxation

Q: Mr. and Mrs. Hattan have lived in their residence for

Mr. and Mrs. Hattan have lived in their residence for 20 years and purchased the house for $100,000 as joint tenants with right of survivorship. Mr. Hattan died in May of the current year when the hou...

Q: For the last nine years, Mr. and Mrs. Orchard

For the last nine years, Mr. and Mrs. Orchard live in a residence located on eight acres. In January of the current year they sell the home and two acres of land. The purchaser of the residence does n...

Q: George, age 68, decides to retire from farming and is

George, age 68, decides to retire from farming and is considering selling his farm. The farm has a $100,000 basis and a $400,000 FMV. George’s two sons are not interested in farming. Both sons have la...

Q: Ray and Ellie have each owned a principal residence used for more

Ray and Ellie have each owned a principal residence used for more than five years. Ray’s residence has an adjusted basis of $100,000 and a FMV of $325,000, while Ellie’s residence has an adjusted basi...

Q: Your client, Kent Earl, whose tax rate is 35%,

Your client, Kent Earl, whose tax rate is 35%, owns a bowling alley and has indicated that he wants to sell the business for $1 million and purchase a minor league baseball franchise. His business con...

Q: Assume the same facts as in Case Study Problem I:13

Assume the same facts as in Case Study Problem I:13-69 except you have the following market values as a result of an appraisal: Equipment $ 250,000 Building...

Q: Betty, whose tax rate is 33%, is in the business

Betty, whose tax rate is 33%, is in the business of breeding and racing horses. Except for the transactions below, she has no other sales or exchanges and she has no unrecaptured net Sec. 1231 losses....

Q: Why were taxpayers reluctant to sell appreciated business property between 1938 and

Why were taxpayers reluctant to sell appreciated business property between 1938 and 1942? What effect did this reluctance have on the tax law?

Q: When is livestock considered Sec. 1231 property?

When is livestock considered Sec. 1231 property?

Q: When is a net Sec. 1231 gain treated as ordinary income

When is a net Sec. 1231 gain treated as ordinary income?