Questions from Federal Taxation

Q: Your client, a physician, recently purchased a yacht on which

Your client, a physician, recently purchased a yacht on which he flies a pennant with a medical emblem on it. He recently informed you that he purchased the yacht and flies the pennant to advertise hi...

Q: Your client, Home Products Universal (HPU), distributes home improvement

Your client, Home Products Universal (HPU), distributes home improvement products to independent retailers throughout the country. Its management wants to explore the possibility of opening its own ho...

Q: A client, Mal Manley, fills out his client questionnaire for

A client, Mal Manley, fills out his client questionnaire for the previous year and on it provides information for the preparation of his individual income tax return. The IRS has never audited Mal’s r...

Q: The purpose of this problem is to enhance your skills in interpreting

The purpose of this problem is to enhance your skills in interpreting the authorities that you locate in your research. In answering the questions that follow, refer only to Thomas A. Curtis, M.D., In...

Q: Josh contributes $5,000 toward the support of his widowed

Josh contributes $5,000 toward the support of his widowed mother, aged 69, a U.S. citizen and resident. She earns gross income of $2,000 and spends it all for her own support. In addition, Medicare pa...

Q: Amy owns a vacation cottage in Maine. She predicts that the

Amy owns a vacation cottage in Maine. She predicts that the time during which the cottage will be used in the current year is as follows: By Amy, solely for vacation…………………………………………………..12 days By Am...

Q: Look up Summit Publishing Company, 1990 PH T.C.

Look up Summit Publishing Company, 1990 PH T.C. Memo ¶90,288 (T.C. Memo 1990-288), 59 TCM 833, and J.B.S. Enterprises, 1991 PH T.C. Memo ¶91,254 (T.C. Memo 1991-254), 61 TCM 2829, and answer the follo...

Q: Your supervisor would like to set up a single Sec. 401

Your supervisor would like to set up a single Sec. 401(k) plan exclusively for the managers of your organization. Concerned that this arrangement might not meet the requirements for a qualified plan,...

Q: Sid purchased an automobile for personal use on January 18, 2013

Sid purchased an automobile for personal use on January 18, 2013 for $10,000. On January 1, 2017, Sid starts a small business and begins to use the automobile exclusively in the business. The automobi...

Q: Tony has owned an oil and gas property for a number of

Tony has owned an oil and gas property for a number of years. The following information is provided about the property’s operations in the current year: Gross income...