Questions from Federal Taxation

Q: Ernie's Farm and Garden Implement Store sells, repairs, and services

Ernie's Farm and Garden Implement Store sells, repairs, and services farm and garden equipment. In 2016, the state attorney general began to investigate customers' complaints that Ernie's was adding...

Q: Lydia and Andre are divorcing this year. Because they are hotly

Lydia and Andre are divorcing this year. Because they are hotly contesting the terms of the settlement, they will not file a joint return for the current year. Lydia receives a Form 1099-INT from An...

Q: Mr. and Mrs. Lucky have been married for 25 years

Mr. and Mrs. Lucky have been married for 25 years. Last year, they won $200,000 at a casino. They knew that this would put them in the highest tax bracket for the year. To avoid this, they went to...

Q: The Kona Rural Electric Coop (KREC) is an accrual basis

The Kona Rural Electric Coop (KREC) is an accrual basis public utility. All new customers are required to pay a deposit equal to 3 times the customer's estimated monthly bill or $100, whichever is gre...

Q: Thuy buys a rental house in 2010 for $75,000

Thuy buys a rental house in 2010 for $75,000. In 2017, she sells it for $86,000. Thuy properly deducted $22,000 in depreciation on the house before its sale. a. What is the amount and character of t...

Q: Grace, the minister of the local United Methodist Church, has

Grace, the minister of the local United Methodist Church, has some tax questions regarding her employment status. This is her first year as a United Methodist minister after having served as a Baptis...

Q: Warren is chief executive of a major corporation and is very concerned

Warren is chief executive of a major corporation and is very concerned about his premature balding. He contacts a hair transplant specialist and wants to have surgery performed this year. Write a me...

Q: Rosemary attends classes provided by her church. She makes payments to

Rosemary attends classes provided by her church. She makes payments to the church, which are required to attend classes. She plans to deduct the payments as charitable contributions to her church....

Q: Jon purchases a farm for $2,200,000.

Jon purchases a farm for $2,200,000. The previous owners planted parallel rows of bushes and trees on the land when they acquired it to block the wind from the part of the farm that was planted with...

Q: Larry is a professional gambler, specializing in dog racing. He

Larry is a professional gambler, specializing in dog racing. He spends 50 to 60 hours per week studying racing forms and placing bets at the track. During the current year Larry has winnings of $240...