Questions from Federal Taxation

Q: Ghon is a married taxpayer who retired from his job at Smithfield

Ghon is a married taxpayer who retired from his job at Smithfield Printing in 2016. During 2017, he turns 70 1/2 and begins withdrawing the $215,000 (balance December 31, 2016) in assets in his pensi...

Q: Felicia is a single taxpayer who retired from her job as a

Felicia is a single taxpayer who retired from her job as a sales executive with Waynesville Associates, LLC. During 2016, she turns 70 ½ and decides to begin withdrawing the $320,000 in assets (balan...

Q: Suresh is sales representative for Swinley Manufacturing. The corporation maintains a

Suresh is sales representative for Swinley Manufacturing. The corporation maintains a defined contribution profit sharing plan on behalf of its employees. The company contributes 15% of each employe...

Q: Hector is a single taxpayer with adjusted gross income of $123

Hector is a single taxpayer with adjusted gross income of $123,000. What is the maximum contribution that he can make to a Roth IRA for the current year?

Q: Ross is single and maintains an IRA. During a trip to

Ross is single and maintains an IRA. During a trip to Las Vegas in 2017, he wins $14,000 at the roulette wheel. He decides to put half his earnings in his IRA account and spend the other half on a t...

Q: During the current year, Kyung purchases a boat for $70

During the current year, Kyung purchases a boat for $70,000. Because she has only $7,000 of the necessary $14,000 down payment, Kyung makes a $7,000 withdrawal from her IRA account. Immediately befo...

Q: Glenna is retired from the Cherry Hills Corporation. When she retired

Glenna is retired from the Cherry Hills Corporation. When she retired at 68, she decided to take her pension as a lump-sum distribution and roll over the proceeds tax free into her IRA. On January 1...

Q: Bostian Company reports a net Section 1231 gain of $31,

Bostian Company reports a net Section 1231 gain of $31,000 during the current year. Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that...

Q: Juan and Angel, ages 56 and 54, respectively, decide

Juan and Angel, ages 56 and 54, respectively, decide to establish Roth IRAs. Juan and Angel are married, and both are covered by pension plans where they work. Their adjusted gross income is $125,00...

Q: On September 1, 2017, Beaconsfield Corporation grants Albert a nonqualified

On September 1, 2017, Beaconsfield Corporation grants Albert a nonqualified stock option to acquire 500 shares of the company’s stock for $8 per share. The fair market value of the stock on the date...