Questions from Federal Taxation

Q: Why is a taxpayer's filing status important?

Why is a taxpayer's filing status important?

Q: Tom, an executive for a large corporation, enjoys the challenge

Tom, an executive for a large corporation, enjoys the challenge of preparing his tax return. He is aggressive in preparing his return and searches through all the available publications to reduce his...

Q: Dwight purchases a new home costing $100,000 in the

Dwight purchases a new home costing $100,000 in the current year. He pays $15,000 down and borrows the remaining $85,000 by securing a mortgage on the home. He also pays $2,000 in closing costs, and...

Q: Donna bought her home several years ago for $200,000

Donna bought her home several years ago for $200,000. She paid $20,000 down on the purchase and borrowed the remaining $180,000. When the home is worth $280,000 and the balance on the mortgage is $1...

Q: During the current year, Inge sells stock purchased three years ago

During the current year, Inge sells stock purchased three years ago at a loss of $9,000. She also owns a 10% interest in Chatham, Inc., which is organized as an S corporation. Chatham reports ordina...

Q: Diedre is single and has dividend income of $7,500

Diedre is single and has dividend income of $7,500 and a $6,000 long-term capital gain. She pays $9,000 of investment interest. The interest expense relates to all of the assets in her portfolio. D...

Q: Jose donates stock worth $20,000 to the United Way

Jose donates stock worth $20,000 to the United Way. He purchased the stock several years ago for $8,000. His adjusted gross income is $60,000. Identify the tax issue(s) posed by the facts presented....

Q: Royce received an antique watch as a gift from his grandfather.

Royce received an antique watch as a gift from his grandfather. The fair market value of the watch is $12,500. The watch has been missing all year and is not covered by insurance. Identify the tax...

Q: Casandra and Gene are married and have a daughter who is a

Casandra and Gene are married and have a daughter who is a junior at State University. Their adjusted gross income for the year is $78,000, and they are in the 25% marginal tax bracket. They paid th...

Q: You have just been hired as a tax accountant by a local

You have just been hired as a tax accountant by a local public accounting firm. One partner is impressed by your writing skills and asks you to write a one-page memo to a client describing the genera...