Questions from Federal Taxation


Q: When is the gain on the sale or exchange of securities by

When is the gain on the sale or exchange of securities by a dealer in securities classified as capital gain?

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Q: What is the normal due date for the tax return of calendar

What is the normal due date for the tax return of calendar-year taxpayers? What happens to the due date if it falls on a Saturday, Sunday, or holiday?

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Q: Today, Juanita purchases a 15-year, 7% bond

Today, Juanita purchases a 15-year, 7% bond of the Sunflower Corporation issued four years ago at par. She purchases the bond as an investment at a discount from the par value. If she sells the bonds...

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Q: Trisha, whose tax rate is 35%, sells the following capital

Trisha, whose tax rate is 35%, sells the following capital assets in 2017 with gains and losses as shown: a. Determine Trisha’s increase in tax liability as a result of the three sal...

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Q: During 2017, Gary receives a $50,000 salary and

During 2017, Gary receives a $50,000 salary and has no deductions for AGI. In 2016, Gary had a $5,000 STCL and no other capital losses or capital gains. Consider the following sales and determine Gary...

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Q: What is the primary service function provided by the National Office of

What is the primary service function provided by the National Office of the IRS?

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Q: Richard Penn lives in Harrisburg, Pennsylvania. Richard is the president

Richard Penn lives in Harrisburg, Pennsylvania. Richard is the president of an architectural firm. Richard has become known throughout the community for excellent work and honesty in his business deal...

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Q: Phil, a cash-basis taxpayer, sells the following marketable

Phil, a cash-basis taxpayer, sells the following marketable securities, which are capital assets during 2017. Determine whether the gains or losses are long-term or short-term. Also determine the net...

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Q: What problem may exist in determining the amount realized for an investor

What problem may exist in determining the amount realized for an investor who exchanges common stock of a publicly traded corporation for a used building? How is the problem likely to be resolved?

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Q: The Michigan Corporation owns 20% of the Wolverine Corporation. The

The Michigan Corporation owns 20% of the Wolverine Corporation. The Wolverine stock was acquired eight years ago to ensure a steady supply of raw materials. Michigan also owns 30% of Spartan Corporati...

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