Questions from Federal Taxation

Q: The Miller family has owned several large apartment buildings for many years

The Miller family has owned several large apartment buildings for many years. They organized Miller Properties, Inc., to own and manage the properties. The corporation is an accrual basis taxpayer a...

Q: Omega Investments, Inc. was formed in 1999 by 10 unrelated

Omega Investments, Inc. was formed in 1999 by 10 unrelated individual investors. The corporation operates a chain of electronics stores. The corporation suffered losses in its early years but has be...

Q: Henry invests $50,000 in an entity called Forward Investments

Henry invests $50,000 in an entity called Forward Investments on January 20, 2016. Under the terms of the investment agreement, the $50,000 is considered a loan that Forward will use to invest in der...

Q: Sam is an executive with a U.S. corporation.

Sam is an executive with a U.S. corporation. During the current year, he is working in another country. His employer provides a corporation-owned residence for Sam which is located three miles from...

Q: Rick and Maria had been married for 20 years before their divorce

Rick and Maria had been married for 20 years before their divorce in the current year. At that time, they made the usual property settlement: Maria got the house, the van and the cat; Rick got the mo...

Q: Gary is an internal auditor for Bodine Information Systems (BIF).

Gary is an internal auditor for Bodine Information Systems (BIF). In 2014, BIF opened a large production plant in Las Vegas, Nevada. Subsequently, Gary has had to spend several months each year at t...

Q: Adrian is a salesperson who represents several wholesale companies. On January

Adrian is a salesperson who represents several wholesale companies. On January 2, 2017, she receives by mail a commission check from Ace Distributors in the amount of $10,000 and dated December 30, 2...

Q: Neila sells 500 shares of Bolero Corporation stock for $10,

Neila sells 500 shares of Bolero Corporation stock for $10,500 and pays $500 in sales commissions on September 23 of the current year. She acquired the stock for $4,700 plus $300 in commissions five...

Q: Hawaii law requires the state to deposit a part of its annual

Hawaii law requires the state to deposit a part of its annual pineapple income in the Hawaiian Long-lasting Fund. All income from the fund is deposited in the state's general fund. The fund's general...

Q: After Maria and Tatsuo are divorced, their 2 minor children continue

After Maria and Tatsuo are divorced, their 2 minor children continue to live with Maria. Pursuant to their divorce decree, Tatsuo pays Maria $1,000 per month in child support and $1,800 per month in...