Questions from Federal Taxation

Q: Robin inherits 1,000 shares of Wal-Mart stock from

Robin inherits 1,000 shares of Wal-Mart stock from her aunt in 2017. According to the information received from the executor of her aunt’s estate, Robin’s adjusted basis for the stock is $55,000. Albe...

Q: Derek, a cash basis, unmarried taxpayer, had $610

Derek, a cash basis, unmarried taxpayer, had $610 of state income tax withheld during 2017. Also in 2017, Derek paid $50 that was due when he filed his 2016 state income tax return and made estimated...

Q: In two unrelated transactions, Laura exchanges property that qualifies for like

In two unrelated transactions, Laura exchanges property that qualifies for like-kind exchange treatment. In the first exchange, Laura gives up office equipment purchased in May 2015 (adjusted basis of...

Q: Five years ago Bridget decided to purchase a limited partnership interest in

Five years ago Bridget decided to purchase a limited partnership interest in a fast-food restaurant conveniently located near the campus of Southeast State University. The general partner of the resta...

Q: Thelma inherited land from Sadie on June 7, 2017. The

Thelma inherited land from Sadie on June 7, 2017. The land appreciated in value by 100% during the six months it was owned by Sadie. The value has remained stable during the three months Thelma has ow...

Q: Marilyn owns land that she acquired three years ago as an investment

Marilyn owns land that she acquired three years ago as an investment for $250,000. Because the land has not appreciated in value as she anticipated, she sells it to her brother, Amos, for its fair mar...

Q: Comment on the following transactions: a. Mort owns 500

Comment on the following transactions: a. Mort owns 500 shares of Pear, Inc. stock with an adjusted basis of $22,000. On July 28, 2017, he sells 100 shares for $3,000. On August 16, 2017, he purchases...

Q: Which of the following qualify as like-kind exchanges under §

Which of the following qualify as like-kind exchanges under § 1031? a. Improved for unimproved real estate. b. Vending machine (used in business) for inventory. c. Rental house for personal residence....

Q: George is the owner of numerous classic automobiles. His intention is

George is the owner of numerous classic automobiles. His intention is to hold the automobiles until they increase in value and then sell them. He rents the automobiles for use in various events (e.g.,...

Q: Ross would like to dispose of some land he acquired five years

Ross would like to dispose of some land he acquired five years ago because he believes that it will not continue to appreciate. Its value has increased by $50,000 over the five-year period. He also in...