Questions from Federal Taxation

Q: What is the basis for valuing assets transferred by gift and at

What is the basis for valuing assets transferred by gift and at death?

Q: Are the following payments deductible? a. A contribution to

Are the following payments deductible? a. A contribution to a fund to finance Honest Abe's campaign for mayor. b. A contribution to the Hardcore Gamblers' Association to fund efforts to persuade the p...

Q: During the current year, the Fremantle Corporation, a real estate

During the current year, the Fremantle Corporation, a real estate development firm, incurs $2,200 of expenses lobbying and testifying before the city council to change the zoning rules. The firm also...

Q: During the current year, Maureen pays Universal Bank and Trust $

During the current year, Maureen pays Universal Bank and Trust $1,600 for investment advice. The fee is not directly related to any particular investment owned by Maureen. The company provides her w...

Q: Ying pays an adviser $300 to help manage her investments and

Ying pays an adviser $300 to help manage her investments and provide investment advice. The adviser's fee is not directly related to any particular investment owned by Ying. She owns $40,000 worth o...

Q: Kerry is employed as a ticket vendor at an off-track

Kerry is employed as a ticket vendor at an off-track betting parlor in New York. No credit is extended to customers, and employees are not allowed to bet on races. Kerry is a compulsive gambler and...

Q: What is the difference between earned income and unearned income?

What is the difference between earned income and unearned income?

Q: Tracy and Brenda are equal partners in Crescent Home Furniture, which

Tracy and Brenda are equal partners in Crescent Home Furniture, which is organized as an S corporation. For the year, the company reports sales revenue of $330,000 and business expenses of $195,000....

Q: Determine the current tax deduction allowed in each of the following situations

Determine the current tax deduction allowed in each of the following situations: a. Doug, John's son, buys a new car that is titled in Doug's name. John pays for Doug's auto license tag. The tag cos...

Q: Determine the current tax deduction allowed in each of the following situations

Determine the current tax deduction allowed in each of the following situations: a. Sam owns and operates SoftPro, a software programming business. In June, the firm files for bankruptcy. Eighteen m...