Questions from Federal Taxation

Q: Yorgi purchases qualified small business stock in Gnu Company, Inc.,

Yorgi purchases qualified small business stock in Gnu Company, Inc., on September 15, 2008, for $50,000. She sells the shares for $400,000 on December 30, 2017. The stock retains its qualified small...

Q: Under what conditions may a taxpayer exclude a portion of a realized

Under what conditions may a taxpayer exclude a portion of a realized capital gain?

Q: Return to the facts of Problem 48. Assume that Yorgi has

Return to the facts of Problem 48. Assume that Yorgi has a net capital loss of $80,000 from her other capital asset transactions in 2017. What is the effect of the sale of the stock on Yorgi’s tax l...

Q: Return to the facts of problem 48. Assume that Yorgi purchased

Return to the facts of problem 48. Assume that Yorgi purchased the qualified small business stock in Gnu Company, Inc., on September 15, 2009, and sells the shares for $400,000 on December 30, 2017....

Q: Return to the facts of problem 50. How would your answer

Return to the facts of problem 50. How would your answer change if Yorgi purchased the qualified small business stock in Gnu Company, Inc. on September 15, 2011, and sells the shares for $400,000 on...

Q: During August 2012, Madeline invests $400,000 in Qual

During August 2012, Madeline invests $400,000 in Qual Company, Inc., buying 100,000 shares of stock. Her broker tells her this will be an excellent investment because the securities are qualified sma...

Q: Rosie has owned a successful luncheonette for several years. Tired of

Rosie has owned a successful luncheonette for several years. Tired of the long hours and eager to try another way of life, she decides to buy a fishing boat and start a charter service near Key West....

Q: Twenty years ago, Consuela Guererro invented and patented a high-

Twenty years ago, Consuela Guererro invented and patented a high-speed burrito-stuffing machine. Through the years, she has jealously guarded her invention, allowing its use only in El Consuela's, a c...

Q: At the beginning of 2017, Heather owns the following stocks:

At the beginning of 2017, Heather owns the following stocks: In addition to these stocks, Heather received 400 shares of Poor Boy preferred stock from her grandfather as a gift on December 25, 2016....

Q: During the current year, the Harlow Corporation, which specializes in

During the current year, the Harlow Corporation, which specializes in commercial construction had the following property transactions. Determine the realized and recognized gain or loss on each of Har...