Questions from Federal Taxation

Q: What are the net operating loss carryback and carryforward periods? Does

What are the net operating loss carryback and carryforward periods? Does a taxpayer have a choice of the years to which a net operating loss can be carried? Explain.

Q: Gloria sells land that she held as an investment for $2

Gloria sells land that she held as an investment for $2,000 to the Lacy for Senate Campaign Committee. Gloria purchased the land twenty years ago for $2,000. The chairman of the Lacy for Senate Campai...

Q: Darrell is an employee of Whitney's. During the current year,

Darrell is an employee of Whitney's. During the current year, Darrell's salary is $136,000. Whitney's net self-employment income is also $136,000. Calculate the Social Security and self-employment...

Q: What are the characteristics of a tax shelter as the term is

What are the characteristics of a tax shelter as the term is commonly used by tax practitioners?

Q: How is a taxpayer's amount at risk in an activity different from

How is a taxpayer's amount at risk in an activity different from the taxpayer's basis in the same activity? What purpose does the amount at risk serve in regard to losses?

Q: What is a nonrecourse debt? How is financing using nonrecourse debt

What is a nonrecourse debt? How is financing using nonrecourse debt different from financing using recourse debt?

Q: Are the passive loss rules disallowance-of-loss provisions or

Are the passive loss rules disallowance-of-loss provisions or are they loss deferral provisions? Explain.

Q: For purposes of the passive loss rules, what is a closely

For purposes of the passive loss rules, what is a closely held corporation? How is the tax treatment of passive losses incurred by a closely held corporation different from the tax treatment of passi...

Q: When a business sustains a loss from a casualty, one of

When a business sustains a loss from a casualty, one of two measurement rules is used to determine the amount of the loss. Why is the use of two measurement rules necessary for determining a business...

Q: What are the limitations on the deductibility of capital losses by individuals

What are the limitations on the deductibility of capital losses by individuals? How do the limitations compare with those for corporations?