Questions from Federal Taxation


Q: Discuss the penalty provisions associated with Roth IRAs.

Discuss the penalty provisions associated with Roth IRAs.

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Q: Jackie receives 100 shares of stock as a birthday gift from her

Jackie receives 100 shares of stock as a birthday gift from her Uncle Horace. Horace acquired the shares 22 years ago for $4 each. The stock's value on Jackie's birthday is $36 per share. She sells...

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Q: Explain the differences between a nonqualified stock option plan and an incentive

Explain the differences between a nonqualified stock option plan and an incentive stock option plan.

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Q: Explain the difference in the tax treatment of a nonqualified stock option

Explain the difference in the tax treatment of a nonqualified stock option that has a readily ascertainable fair market value and one that does not have a readily ascertainable fair market value.

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Q: How is a nonqualified stock option taxed if it is subject to

How is a nonqualified stock option taxed if it is subject to substantial risk of forfeiture?

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Q: What is the advantage of making a Section 83(b)

What is the advantage of making a Section 83(b) election?

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Q: What requirements must a stock option meet to qualify as an incentive

What requirements must a stock option meet to qualify as an incentive stock option?

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Q: What is the tax treatment of a stock option that qualifies as

What is the tax treatment of a stock option that qualifies as an incentive stock option? What is the treatment if the requirements are not met?

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Q: Why are tax credits rather than a deduction used to provide tax

Why are tax credits rather than a deduction used to provide tax relief?

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Q: Why are business credits allowed to be carried forward to future tax

Why are business credits allowed to be carried forward to future tax years?

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