Questions from Federal Taxation

Q: Laser Corporation, a U.S. corporation, has a

Laser Corporation, a U.S. corporation, has a foreign office that conducts business in France. Laser pays foreign taxes of $74,000 on foreign-source taxable income of $185,000. Its U.S.-source taxable...

Q: List three requirements that apply to written advice under Treasury Department Circular

List three requirements that apply to written advice under Treasury Department Circular 230.

Q: Which of the following categories of individuals or income are exempt from

Which of the following categories of individuals or income are exempt from the federal income tax withholding requirements? a. Household employees b. Independent contractors c. Newspaper carriers o...

Q: Jane’s estimated tax payments for the current year total $14,

Jane’s estimated tax payments for the current year total $14,000, and federal income taxes withheld from her salary amount to $12,000. Jane’s actual tax liability for the current year is $30,000. Her...

Q: William and Maria Smith are a married couple filing jointly. They

William and Maria Smith are a married couple filing jointly. They have no children and report the following items in 2017: Taxable income……………………………………………………………$70,000 Tax preferences…………………………………………...

Q: Jose, an unmarried taxpayer filing single with no dependents, has

Jose, an unmarried taxpayer filing single with no dependents, has AGI of $200,000 and reports the following items in 2017: Taxable income…………………………………………………………$160,000 Tax preferences…………………………………………...

Q: Harry and Mary Prodigious are married filing jointly and have 12 dependent

Harry and Mary Prodigious are married filing jointly and have 12 dependent children. Six of the children are under age 17. With the large number of children, they live in a very austere manner. Harry,...

Q: Allen, an unmarried taxpayer filing single, has no dependents and

Allen, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2017 federal income tax return: Adjusted gross income……………………………………$82,450 Taxable income………………………...

Q: Amelia has wages of $45,000 and net income from

Amelia has wages of $45,000 and net income from a small unincorporated business of $70,000 for 2017. a. What is the amount of Amelia’s self-employment (SE) tax and deduction for AGI for her SE tax?...

Q: Arnie and Angela are married and file a joint return in 2017

Arnie and Angela are married and file a joint return in 2017. Arnie is a partner in a public accounting firm. His share of the partnership’s income in the current year is $40,000, and he receives guar...