Questions from Federal Taxation

Q: Use the following data to calculate Chiara’s 2017 AMT base. Chiara

Use the following data to calculate Chiara’s 2017 AMT base. Chiara files as a single taxpayer and itemizes her deductions. Taxable income……………………………………………….$148,000 Po...

Q: Nell, Nina, and Nora Sanders, who are sisters,

Nell, Nina, and Nora Sanders, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The se...

Q: Arthur Wesson, an unmarried individual who is age 68, reports

Arthur Wesson, an unmarried individual who is age 68, reports 2017 taxable income of $160,000 and a regular tax liability of $37,050. Arthur itemizes his deductions, and he records AMT positive adjust...

Q: In the current year, Dylan earned taxable and tax-exempt

In the current year, Dylan earned taxable and tax-exempt interest from the following investments. Investment……………………………………………………………………….Interest Income 10-year municipal bond (issued in 2009)……………………...

Q: Calculate the 2017 AMT exemption amount for the following cases for a

Calculate the 2017 AMT exemption amount for the following cases for a married taxpayer filing jointly, and for a married taxpayer filing separately. In addition, in an Excel formula, express your solu...

Q: In the current year, an individual taxpayer has net long-

In the current year, an individual taxpayer has net long-term capital gain from disposition of capital assets and has unrecaptured § 1250 gain. What would the circumstances have to be for the unrecapt...

Q: Lisa holds nonrefundable Federal income tax credits of $65,000

Lisa holds nonrefundable Federal income tax credits of $65,000. Her regular income tax liability before credits is $190,000, and her tentative minimum tax is $150,000. a. What is Lisa’s AMT? b. What i...

Q: Angela, who is single, incurs circulation expenditures of $153

Angela, who is single, incurs circulation expenditures of $153,000 during 2017. She is deciding whether to deduct the entire $153,000 or to capitalize it and elect to deduct it over a three-year perio...

Q: Kathy owns and operates a grocery store as a sole proprietor.

Kathy owns and operates a grocery store as a sole proprietor. She pays wages to her husband Joe and their 17-year-old daughter Marla, both of whom work at the store. Should Kathy withhold FICA taxes f...

Q: Archie runs a small mineral exploration business (as a sole proprietorship

Archie runs a small mineral exploration business (as a sole proprietorship). In 2015, he purchased land (for $68,000) where he suspected a magnesium deposit was located. He incurred $18,000 of explora...