Questions from Federal Taxation

Q: A depreciable business dump truck has been owned for four years and

A depreciable business dump truck has been owned for four years and is no longer useful to the taxpayer. What would have to be true for the disposition of the dump truck to generate at least some § 12...

Q: Liz had AGI of $130,000 in 2017. She

Liz had AGI of $130,000 in 2017. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2017. a. What is the amount of Liz’s deduction assumin...

Q: Auralia owns stock in Orange Corporation and Blue Corporation. She receives

Auralia owns stock in Orange Corporation and Blue Corporation. She receives a $10,000 distribution from both corporations. The instructions from Orange state that the $10,000 is a dividend. The instru...

Q: Karl purchased his residence on January 2, 2016, for $

Karl purchased his residence on January 2, 2016, for $260,000, after having lived in it during 2015 as a tenant under a lease with an option to buy clause. On August 1, 2017, Karl sells the residence...

Q: Mark and Lisa are approaching an exciting time in their lives as

Mark and Lisa are approaching an exciting time in their lives as their oldest son, Austin, graduates from high school and moves on to college. What are some of the tax issues that Mark and Lisa should...

Q: How might a taxpayer who cannot avoid engaging in activities that generate

How might a taxpayer who cannot avoid engaging in activities that generate AMT adjustments minimize or eliminate such adjustments?

Q: An AMT liability results if the tentative minimum tax (TMT)

An AMT liability results if the tentative minimum tax (TMT) exceeds the regular income tax liability. But what happens if the regular income tax liability exceeds the TMT? Does this create a negative...

Q: Andrew and Monica, unrelated individuals, use the same Federal income

Andrew and Monica, unrelated individuals, use the same Federal income tax filing status (head of household). However, Monica’s AMT exemption amount is $52,800, while Andrew’s is $0. Explain.

Q: Alfred is single, and his AMTI of $350,000

Alfred is single, and his AMTI of $350,000 consists of the following. What tax rates are applicable in calculating Alfred’s TMT? Ordinary income………………..$250,000 Long-term capital gains…………70,000 Qual...

Q: Evaluate the validity of the following statement: In a year in

Evaluate the validity of the following statement: In a year in which depreciable personal property is sold, the amount of the AMT gain adjustment equals the amount of the current year’s AMT depreciati...