Questions from Federal Taxation

Q: Dennis sells short 100 shares of ARC stock at $20 per

Dennis sells short 100 shares of ARC stock at $20 per share on January 15, 2017. He buys 200 shares of ARC stock on April 1, 2017, at $25 per share. On May 2, 2017, he closes the short sale by deliver...

Q: Sonja is considering the purchase and renovation of an old building.

Sonja is considering the purchase and renovation of an old building. She has heard about the tax credit for rehabilitation expenditures, but Sonja does not know the specific rules applicable to the cr...

Q: Elaine Case (single with no dependents) has the following transactions

Elaine Case (single with no dependents) has the following transactions in 2017: AGI (exclusive of capital gains and losses)………$240,000 Long-term capital gain………………………………………..22,000 Long-term capital...

Q: In 2017, Bertha Jarow had a $28,000 loss

In 2017, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased a patent on a rubber bonding process from an individual inventor for $7,000 (and resold it in two mon...

Q: Cabel’s warehouse, which has an adjusted basis of $380,

Cabel’s warehouse, which has an adjusted basis of $380,000 and a fair market value of $490,000, is condemned by an agency of the Federal government to make way for a highway interchange. The initial c...

Q: Bridgette is known as the “doll lady.” She started collecting

Bridgette is known as the “doll lady.” She started collecting dolls as a child, always received one or more dolls as gifts on her birthday, never sold any dolls, and eventually owned 600 dolls. She is...

Q: Sheila inherited 300 shares of stock, 100 shares of Magenta and

Sheila inherited 300 shares of stock, 100 shares of Magenta and 200 shares of Purple. She has a stockbroker sell the shares for her, uses the proceeds for personal expenses, and thinks nothing further...

Q: Phil and Susan Hammond are married taxpayers filing a joint return.

Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2016. Phil does not work due to a disability, but he is a buye...

Q: Paul has the following long-term capital gains and losses for

Paul has the following long-term capital gains and losses for 2017: $62,000 28% gain, $21,000 28% loss, $18,000 25% gain, and $64,000 0%/15%/20% gain. He also has a $53,000 short-term loss and a $5,00...

Q: Helena has the following long-term capital gains and losses for

Helena has the following long-term capital gains and losses for 2017: $65,000 28% gain, $53,000 28% loss, $28,000 25% gain, and $24,000 0%/15%/20% loss. She also has a $33,000 short-term loss and a $6...