Questions from Federal Taxation

Q: Return to the facts of problem 39. Assume that Jeremy gives

Return to the facts of problem 39. Assume that Jeremy gives the property to his son Felipe when the property has a fair market value of $37,000. What is the effect of the gift on Jeremy's taxable in...

Q: Masaya owns a passive activity that has a basis of $32

Masaya owns a passive activity that has a basis of $32,000 and a suspended loss of $13,000. Masaya's taxable income from active and portfolio income is $73,000. a. What is the effect on Masaya's taxab...

Q: Claudio owns a passive activity that has a basis of $28

Claudio owns a passive activity that has a basis of $28,000 and a fair market value of $38,000. The activity has suspended losses of $16,000. To reduce their estate, every year Claudio and his wife g...

Q: ABC Company owns a chain of furniture stores. How much loss

ABC Company owns a chain of furniture stores. How much loss can ABC Company deduct in each of the following cases? Explain. a. ABC closes a store in a depressed part of the county. Rather than move...

Q: The Goodson Company is a chain of retail electronics stores. How

The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct in each of the following cases. Explain. a. An employee drops a 65 inch 3D television, cracking the...

Q: Based on the facts of problem 57, calculate the taxable income

Based on the facts of problem 57, calculate the taxable income and the tax liability for a married couple. Facts of problem 57, Total income…………………………………………………….$118,000 Excludable income…………………………………...

Q: Gordon is the sole proprietor of Fashion Flowers & Florals (FFF

Gordon is the sole proprietor of Fashion Flowers & Florals (FFF). During the current year, one of FFF's delivery vans is involved in an automobile accident. The van has a basis of $6,000. What is F...

Q: Assume the same facts as in problem 47. What is FFF's

Assume the same facts as in problem 47. What is FFF's allowable casualty loss deduction under each of the following situations? a. A comparable van sells for $4,000. After the accident, the insuranc...

Q: Marvin and Tracy Peery’s 2016 taxable income is $87,830

Marvin and Tracy Peery’s 2016 taxable income is $87,830 before considering the effect of their investment activities. Details of their 2016 sales of investment assets follows: / The Form...

Q: Stella owns a taxicab company. During the year, two of

Stella owns a taxicab company. During the year, two of her cabs are involved in accidents. One is totally destroyed; the other is heavily damaged. Stella is able to replace the destroyed cab with an...