Questions from Federal Taxation

Q: What documentation is required in order for a travel or entertainment expense

What documentation is required in order for a travel or entertainment expense to be deductible?

Q: Kathleen pays $3,000 mortgage interest on the home that

Kathleen pays $3,000 mortgage interest on the home that she and her husband live in. Kathleen and her husband live with Molly, Kathleen’s mother. The title to the home is in Kathleen’s name. However,...

Q: During the current year, Stan sells a tract of land for

During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000...

Q: The profession of tax practice involves four principal areas of activity.

The profession of tax practice involves four principal areas of activity. Discuss these four areas.

Q: Determine the taxable income for the Columbia Corporation for the following independent

Determine the taxable income for the Columbia Corporation for the following independent cases:

Q: a. Briefly explain the concept of support. b.

a. Briefly explain the concept of support. b. If a taxpayer provides 50% or less of another person’s support, is it possible for the taxpayer to claim a dependency exemption? Explain. c. Does support...

Q: For flow-through entities, such as partnerships, how does

For flow-through entities, such as partnerships, how does the tax law use partner basis adjustments to prevent double taxation of partnership income?

Q: Mike, a real estate broker in California, recently inherited a

Mike, a real estate broker in California, recently inherited a farm from his deceased uncle and plans to sell the farm to the first available buyer. His uncle purchased the property 12 years ago for $...

Q: Most estates are not subject to the federal estate tax.

Most estates are not subject to the federal estate tax. a. Why is this the case? b. Do you believe most estates should be subject to the federal estate tax?

Q: Irene owns a truck costing $15,000 and used for

Irene owns a truck costing $15,000 and used for personal activities. The truck has a $9,600 FMV when it is transferred to her business, which is operated as a sole proprietorship. a. What is the basi...