Questions from Federal Taxation

Q: Anthony owned a 2015 Luxuro automobile that had a fair market value

Anthony owned a 2015 Luxuro automobile that had a fair market value of $18,000. His son James, who is 19, borrows the car without his father's knowledge and totals it in 2016. James has been involve...

Q: Orlando owns a passive activity with a basis of $13,

Orlando owns a passive activity with a basis of $13,000 and a $6,000 suspended loss. He dies when the passive activity has a fair market value of $17,000. Determine the possible tax consequences of e...

Q: Mike's Pizza decides to replace one of its delivery vehicles. The

Mike's Pizza decides to replace one of its delivery vehicles. The vehicle has a basis of $2,700 and Mike's is able to sell it for $2,100.

Q: In the United States, dividends received from corporations are taxable at

In the United States, dividends received from corporations are taxable at long-term capital gains rates. Because the corporation paying the dividend does not get a deduction for dividends paid, the di...

Q: Zoriana sells stock that she acquired in 2013 for $7,

Zoriana sells stock that she acquired in 2013 for $7,500. Her basis in the stock is $14,000. She has a $2,000 long-term capital loss carryover from 2016. Determine the possible tax consequences of e...

Q: Alphonse sells stock with a basis of $5,500 to

Alphonse sells stock with a basis of $5,500 to his brother, Conner, for $4,000. His brother sells it later in the year for $5,100. Determine the possible tax consequences of each issue you identify....

Q: Classify the following items as ordinary income, a gain, or

Classify the following items as ordinary income, a gain, or an exclusion: a. The salary received by an employee b. Dividends of $400 received on 100 shares of corporate stock c. Sale for $10,000 of an...

Q: On January 1, 2017, Brenda acquires 200 shares of Disney

On January 1, 2017, Brenda acquires 200 shares of Disney stock for $8,000. She sells 200 shares of the stock on September 2, 2017, for $30 per share. On September 23, 2017, Brenda acquires 400 share...

Q: George is single and has adjusted gross income of $37,

George is single and has adjusted gross income of $37,000. He discovers termites in the basement of his house and pays $6,200 to fix the damage. His insurance company will not reimburse him for the...

Q: Alicia, Bob and Carol are equal partners in, Dunning Law

Alicia, Bob and Carol are equal partners in, Dunning Law Associates. In 2011, Alicia, in an attempt to maximize the firms return on its investment portfolio, encourages her partners to acquire $90,00...