Questions from Federal Taxation

Q: Is there any instance in which a change in tax years is

Is there any instance in which a change in tax years is required? Explain.

Q: a. In what situations will a tax year cover a period

a. In what situations will a tax year cover a period of less than 12 months? b. Under what conditions is a taxpayer required to annualize income? c. Does annualizing income increase or decrease the...

Q: When is a final tax return due for an individual who uses

When is a final tax return due for an individual who uses a calendar year and who dies during the year?

Q: Determine the realized gain or loss, the recognized gain or loss

Determine the realized gain or loss, the recognized gain or loss, and the basis of the equipment received for the following like-kind exchanges:

Q: Mr. and Mrs. Rusbarsky purchased a residence on June 12

Mr. and Mrs. Rusbarsky purchased a residence on June 12, 2014, for $200,000. On March 12, 2017, they sell the residence for $300,000, and selling expenses amount to $11,000. They purchase another hous...

Q: Ace Construction Company sells a used crane to Go Construction for $

Ace Construction Company sells a used crane to Go Construction for $80,000. The crane, which originally cost $900,000, is fully depreciated. Under Sec. 1245 depreciation recapture rules, the entire ga...

Q: On January 10, 2017, Kirsten married Joe. Joe sold

On January 10, 2017, Kirsten married Joe. Joe sold his personal residence on October 25, 2016, and excluded the entire gain of $175,000. Although they had originally planned to live in the house that...

Q: Charles owns an office building and land that are used in his

Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year, th...

Q: Leroy owns a truck used in his trade or business that cost

Leroy owns a truck used in his trade or business that cost $50,000 and has an adjusted basis of $34,000. The truck is exchanged for a new truck that is like-kind property with a FMV of $40,000. Prior...

Q: Lina, an attorney, sold an antique rug for $45

Lina, an attorney, sold an antique rug for $45,000 that had been in her home. The rug cost Lina $12,000 several years ago. Lina collected $15,000 down and received a one-year interest bearing note for...