Questions from Federal Taxation

Q: Marlene opens an outdoor sports complex that features batting cages, miniature

Marlene opens an outdoor sports complex that features batting cages, miniature golf, and a driving range. She invests $100,000 of her own money and borrows $750,000 from her bank. She uses $475,000...

Q: Herman sells his carpet-cleaning business to Elki. As part

Herman sells his carpet-cleaning business to Elki. As part of the sales agreement, Elki pays Herman $3,000 for his agreement not to open another carpet-cleaning business in the area for 3 years. Id...

Q: Michiko and Saul are planning to attend the same university next year

Michiko and Saul are planning to attend the same university next year. The university estimates tuition, books, fees, and living costs to be $12,000 per year. Michiko's father has agreed to give her t...

Q: Tom has $40,000 to invest and seeks your advice

Tom has $40,000 to invest and seeks your advice. A partner at Global Investments has proposed two investment opportunities: a real estate limited partnership or a five-year investment contract that w...

Q: Jay is single and works as a salesman. In December of

Jay is single and works as a salesman. In December of the current year, he is selected as the company's outstanding salesperson. In recognition of this honor, he receives a $75,000 bonus, which puts...

Q: Chapter 6 discusses expenditures of individuals that are deductible for adjusted gross

Chapter 6 discusses expenditures of individuals that are deductible for adjusted gross income (e.g., alimony) and explains the advantage of having an expenditure classified as a deduction for adjusted...

Q: Harold works for the Zanten Corporation. Ken is self-employed

Harold works for the Zanten Corporation. Ken is self-employed. Zanten pays all of Harold's medical insurance premiums, whereas Ken purchases medical insurance from his insurance agent. Explain how...

Q: What is(are) the main difference(s) between

What is(are) the main difference(s) between deductions for AGI and deductions from AGI?

Q: One general requirement for deduction is that the expense be the taxpayer's

One general requirement for deduction is that the expense be the taxpayer's, not that of another. Is this always true? Explain.

Q: Explain the limitations placed on deductions for medical expenses.

Explain the limitations placed on deductions for medical expenses.