Questions from Federal Taxation

Q: Shuana works as a lawyer for a large law firm where professional

Shuana works as a lawyer for a large law firm where professional dress is expected. Her friend, Carissa, is a nurse at a local hospital. Shuana spends $1,500 a year on clothing, shoes, and accessori...

Q: Angela owns a duplex. She rents out one unit and lives

Angela owns a duplex. She rents out one unit and lives in the other. During the current year, she pays $4,500 in interest on the loan she used to buy the duplex, $900 in property taxes on the duplex...

Q: Chin, a cash basis taxpayer, borrows $25,000

Chin, a cash basis taxpayer, borrows $25,000 on a 2-year loan from State Bank to purchase business equipment. Under the terms of the loan, State Bank deducts $4,500 in interest on the loan and gives...

Q: How is a deferral different from an exclusion?

How is a deferral different from an exclusion?

Q: Marcus is the vice president of human resources for Griffin Industries.

Marcus is the vice president of human resources for Griffin Industries. He spent one week testifying before Congress on the impact health care legislation will have on small business. His trip cost...

Q: Fernando is a retired auto mechanic. Since retiring four years ago

Fernando is a retired auto mechanic. Since retiring four years ago, he has made stained glass windows. Because he has only occasional sales, Fernando treats this activity as a hobby. A friend of Ferna...

Q: Max owns an office building that he rents for $750 a

Max owns an office building that he rents for $750 a month. Under the terms of the lease, the tenant is responsible for paying all property taxes and costs related to the building's operation and mai...

Q: Don was a senior vice president of a bank until its officials

Don was a senior vice president of a bank until its officials found he had embezzled more than $1,000,000. Don had set up fictitious checking accounts and deposited the funds into the accounts. He t...

Q: How are federal, state, and local income taxes collected by

How are federal, state, and local income taxes collected by the government? Consider the cases of an employee and a self-employed taxpayer.

Q: Hamid owns and lives in a duplex. He rents the other

Hamid owns and lives in a duplex. He rents the other unit to an unrelated married couple for $850 per month. During the current year, he incurs the following expenses related to the duplex: Mortgag...