Questions from Federal Taxation

Q: Dedriea contributes to her wholly owned corporation some tangible personal property she

Dedriea contributes to her wholly owned corporation some tangible personal property she had used in her sole proprietorship business and depreciated. She had acquired the property for $566,000 and had...

Q: List some events that increase or decrease an investor’s at-risk

List some events that increase or decrease an investor’s at-risk amount. What are some strategies that a taxpayer can employ to increase the at-risk amount to claim a higher deduction for losses?

Q: Roberto invested $18,000 in a chicken production operation.

Roberto invested $18,000 in a chicken production operation. Using nonrecourse notes, the business purchases $120,000 worth of grain to feed the chickens. If Roberto’s share of the expense is $26,000,...

Q: Lisa sells business property with an adjusted basis of $130,

Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair market value of $100,000. a. What is Lisa’s realized and recognized gain or loss? b. What is Alfred’s r...

Q: Explain the meaning of the terms active income, portfolio income,

Explain the meaning of the terms active income, portfolio income, and passive activity income.

Q: On a taxable disposition of a passive activity, the taxpayer can

On a taxable disposition of a passive activity, the taxpayer can use any suspended losses and credits related to that activity. Do you agree? Explain.

Q: Discuss whether the passive activity loss rules apply to the following:

Discuss whether the passive activity loss rules apply to the following: individuals, closely held C corporations, S corporations, partnerships, and personal service corporations.

Q: Discuss what constitutes a passive activity.

Discuss what constitutes a passive activity.

Q: Bronze Corporation has $100,000 of active income, $

Bronze Corporation has $100,000 of active income, $55,000 of portfolio income, and a $55,000 passive activity loss. Under what circumstances is Bronze prohibited from deducting the loss? Allowed to de...

Q: How many hours must a participant work in a nonrental activity to

How many hours must a participant work in a nonrental activity to be guaranteed material participation status?