Questions from Federal Taxation

Q: Sarah has investments in four passive activity partnerships purchased several years ago

Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as follows: Activity ………………….Income (Loss) A……………………………………$ 30,000 B……………...

Q: Would an individual taxpayer receive greater benefit from deducting an expenditure or

Would an individual taxpayer receive greater benefit from deducting an expenditure or from taking a credit equal to 25% of the expenditure? How would your response change if the item would only be ded...

Q: Wolfgang is age 33. His AGI is $125,000

Wolfgang is age 33. His AGI is $125,000. He reports the following itemized deductions for the year. Medical expenses [$15,000 _ (10% _ $125,000)]......................................$2,500 State inc...

Q: Thomas purchased a personal residence from Rachel. To sell the residence

Thomas purchased a personal residence from Rachel. To sell the residence, Rachel agreed to pay $5,500 in points related to Thomas’s mortgage. Discuss the deductibility of the points.

Q: Ramon had AGI of $180,000 in 2017. He

Ramon had AGI of $180,000 in 2017. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable...

Q: Walter, who is single, owns a personal residence in the

Walter, who is single, owns a personal residence in the city. He also owns a cabin near a ski resort in the mountains. He uses the cabin as a vacation home. In August, Walter borrowed $60,000 on a hom...

Q: During the current year, Yoon earned $10,000 in

During the current year, Yoon earned $10,000 in interest on corporate bonds and incurred $13,000 of investment interest expense related to the bond holdings. Yoon also earned $5,000 interest on privat...

Q: Gabriel, age 40, and Emma, age 33, are

Gabriel, age 40, and Emma, age 33, are married with two dependents. They reported AGI of $110,000 for the year, including net investment income of $3,000 and gambling winnings of $2,500. They incurre...

Q: Jane and Robert Brown are married and have eight children, all

Jane and Robert Brown are married and have eight children, all of whom are eligible to be claimed as the couple’s dependents. Robert earns $94,000 working as an accountant, and Jane earns $38,000 as a...

Q: Determine the appropriate amount of 2017 additional Medicare tax for Mario,

Determine the appropriate amount of 2017 additional Medicare tax for Mario, a single individual. His wages total $440,000.