Questions from Federal Taxation

Q: Sylvester owns and operates an unincorporated pizza business that delivers pizza to

Sylvester owns and operates an unincorporated pizza business that delivers pizza to customers. Three years ago, he acquired an automobile for $30,000 to provide delivery service. Recently, Sylvester h...

Q: Jeremy purchased undeveloped oil and gas property five years ago. He

Jeremy purchased undeveloped oil and gas property five years ago. He paid $300,000 for intangible drilling and development costs and elected to expense the $300,000. During the current year, Jeremy se...

Q: At the beginning of 2017, Silver Corporation has a $95

At the beginning of 2017, Silver Corporation has a $95,000 capital loss carryforward from 2016. During 2017, the corporation sells land, held for four years, and realizes an $80,000 gain. Silver has n...

Q: What two functions does a citator serve?

What two functions does a citator serve?

Q: Ed operates a storage business as a sole proprietorship and owns the

Ed operates a storage business as a sole proprietorship and owns the following assets acquired in 1998: Warehouse…………………………………..$400,000 Minus: Accumulated depreciation…..(230,000) Adjusted basis…………...

Q: All assets listed below have been held for more than one year

All assets listed below have been held for more than one year. Which assets might be classified as Sec. 1231, Sec. 1245, or Sec. 1250 property? An asset may be classified as more than one type of prop...

Q: Edith, who has no other sales or exchanges and no nonrecaptured

Edith, who has no other sales or exchanges and no nonrecaptured Sec. 1231 losses, sells three tracts of land that are used in her trade or business. Edith is single, and her regular income tax rate is...

Q: Vicki has an AGI of $70,000 without considering the

Vicki has an AGI of $70,000 without considering the sale of a nondepreciable asset for $23,000. The asset was acquired six years ago and has an adjusted basis of $35,000. She has no other sales or exc...

Q: During the current year, Sean’s office building is destroyed by fire

During the current year, Sean’s office building is destroyed by fire. After collecting the insurance proceeds, Sean has a $50,000 recognized gain. The building was acquired in 1998, and the straight-l...

Q: Consider the following summary of Sec. 1231 gains and losses recognized

Consider the following summary of Sec. 1231 gains and losses recognized by Janet during the period 2012–2017. Janet had no nonrecaptured Sec. 1231 losses at the beginning of 2012. If...