Questions from Federal Taxation

Q: As a hobby, Jane creates and sells oil paintings. During

As a hobby, Jane creates and sells oil paintings. During the current year, her sales total $8,000. How is the tax treatment of her hobby different from the treatment of a trade or business, if a. He...

Q: Sharon is single and a data-processing manager for the phone

Sharon is single and a data-processing manager for the phone company. She also owns and operates a sports memorabilia store. Sharon goes to shows, subscribes to numerous magazines on sports memorabil...

Q: Lee and Sally own a winter retreat in Harlingen, Texas,

Lee and Sally own a winter retreat in Harlingen, Texas, that qualifies as their second home. This year they spent 40 days in their cabin. Because of its ideal location, it is easy to rent at $120 a...

Q: Return to the facts of problem 67. Assume that you are

Return to the facts of problem 67. Assume that you are the CPA in charge of preparing the tax return for each of the taxpayers in the problem. Based on the Standards for Tax Services (which can be f...

Q: Mel and Helen own a beachfront home in Myrtle Beach, S

Mel and Helen own a beachfront home in Myrtle Beach, S.C. During the year, they rented the house for 5 weeks (35 days) at $800 per week and used the house for personal purposes 65 days. The costs of...

Q: Matilda owns a condominium on the beach in Rehoboth, Delaware.

Matilda owns a condominium on the beach in Rehoboth, Delaware. During the current year, she incurs the following expenses related to the property: Mortgage interest…â€...

Q: Haysad owns a house on Lake Tahoe. He uses a real

Haysad owns a house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental pric...

Q: Explain how the capital recovery concept applies to the taxation of annuities

Explain how the capital recovery concept applies to the taxation of annuities. Consider both purchased annuities and pension payments in your answer.

Q: Hromas uses a separate room in his home as an office.

Hromas uses a separate room in his home as an office. The room is 500 square feet of the total 2,000 square feet of the house. During the current year, Hromas incurs the following household expenses...

Q: Charlotte owns a custom publishing business. She uses 500 square feet

Charlotte owns a custom publishing business. She uses 500 square feet of her home (2,000 square feet) as an office and for storage. All her business has come from telemarketing (telephone sales), di...