Questions from Federal Taxation

Q: Rick, a single taxpayer, owns 30,000 shares of

Rick, a single taxpayer, owns 30,000 shares of qualifying small business stock that he had purchased for $300,000. During the current year, he sells 10,000 of the shares for $25,000. a. What are th...

Q: Evita sells 2 pieces of land during the current year. She

Evita sells 2 pieces of land during the current year. She had used the first piece as a parking lot for her pet store. (She owns the store as a sole proprietor.) The land cost Evita $45,000, and she...

Q: Katelyn purchased 300 shares of Condine, Inc., stock in 2015

Katelyn purchased 300 shares of Condine, Inc., stock in 2015 for $9,000. During 2017, she sells 200 shares of Condine to her brother, Jon, for $3,600 and the remaining 100 shares to an unrelated thir...

Q: Elliot sells some stock to his sister, Nancy, for $

Elliot sells some stock to his sister, Nancy, for $4,000. His basis in the stock is $6,000. Several years later, Nancy sells the stock for $7,000. a. What is the effect of the sales on Elliot and...

Q: Howard Company is 100% owned by Rona. During the current

Howard Company is 100% owned by Rona. During the current year, Howard sells some land to Rona for $50,000 that had cost Howard $80,000 and that had a fair market value of $100,000. Write a letter to...

Q: Darlene owns 500 shares of Sandmayor, Inc., common stock that

Darlene owns 500 shares of Sandmayor, Inc., common stock that she purchased several years ago for $20,000. During the current year, the Sandmayor stock declines in value. Darlene decides to sell the...

Q: Ed owns 500 shares of Northern Company for which he paid $

Ed owns 500 shares of Northern Company for which he paid $15,000 several years ago. On November 24, he purchases an additional 350 shares for $6,300. Ed sells the original 500 shares for $10,000 on...

Q: Leona owns 300 shares of Ross Industries. She acquired the shares

Leona owns 300 shares of Ross Industries. She acquired the shares on February 17, 2015, for $6,500. On September 17, 2017, she acquires another 200 shares of Ross for $4,800. Two weeks later, a law...

Q: Jorge and his wife own a beachfront vacation home in Savannah,

Jorge and his wife own a beachfront vacation home in Savannah, Georgia. During the year, high winds from a tropical storm shatter a sliding glass door and rain from the storm causes extensive water d...

Q: Since graduating from college, Mabel has used the firm of R

Since graduating from college, Mabel has used the firm of R&P to prepare her tax returns. Each January, Mabel receives a summary information sheet, which she fills out and sends to R&P along with the...