Q: Dan, a self-employed individual taxpayer, prepared his own
Dan, a self-employed individual taxpayer, prepared his own income tax return for the past year and has asked you to check it for accuracy. Your review indicates that Dan failed to claim certain busine...
See AnswerQ: Commercial Bank has initiated an advertising campaign that encourages customers to take
Commercial Bank has initiated an advertising campaign that encourages customers to take out home equity loans to pay for purchases of automobiles. Are there any tax advantages related to this type of...
See AnswerQ: Tonya sells a passive activity in the current year for $150
Tonya sells a passive activity in the current year for $150,000. Her adjusted basis in the activity is $50,000, and she uses the installment method of reporting the gain. The activity has suspended lo...
See AnswerQ: In 2017, Kathleen Tweardy incurs $30,000 of interest
In 2017, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gai...
See AnswerQ: Helen Derby borrowed $150,000 to acquire a parcel of
Helen Derby borrowed $150,000 to acquire a parcel of land to be held for investment purposes. During the current year, she reported AGI of $90,000 and paid interest of $12,000 on the loan. Other items...
See AnswerQ: In 2016, Fred invested $50,000 in a general
In 2016, Fred invested $50,000 in a general partnership. Fred’s interest is not considered to be a passive activity. If his share of the partnership losses is $35,000 in 2016 and $25,000 in 2017, how...
See AnswerQ: In the current year, Bill Parker (54 Oak Drive,
In the current year, Bill Parker (54 Oak Drive, St. Paul, MN 55164) is considering making an investment of $60,000 in Best Choice Partnership. The prospectus provided by Bill’s broker indicates that t...
See AnswerQ: Jorge owns two passive investments, Activity A and Activity B.
Jorge owns two passive investments, Activity A and Activity B. He plans to sell Activity A in the current year or next year. Juanita has offered to buy Activity A this year for an amount that would pr...
See AnswerQ: Shontelle owns an apartment house that has an adjusted basis of $
Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers the apartment house to Dave and receives from him $120,000 in cash and...
See AnswerQ: An individual taxpayer had a net § 1231 loss in 2017.
An individual taxpayer had a net § 1231 loss in 2017. Could any of this loss be treated as a long-term capital loss? Why or why not?
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