Questions from Federal Taxation

Q: Lois is single. She provides more than 50% of the

Lois is single. She provides more than 50% of the support for her mother who lives in a nursing home. Her mother receives $4,000 from Social Security and $7,000 in dividends. Identify the tax issue(...

Q: Myrth is 67, single, and has poor hearing. She

Myrth is 67, single, and has poor hearing. She pays $300 for special equipment attached to her phones to amplify a caller's voice. Identify the tax issue(s) posed by the facts presented. Determine t...

Q: Jacqueline is single. In June 2017, she receives a refund

Jacqueline is single. In June 2017, she receives a refund of $250 from her 2016 state tax return. Her 2016 itemized deductions were $8,000. In October 2017, her 2015 state tax return is audited, and...

Q: Tina owns and operates Timely Turn Tables (TTT) as a

Tina owns and operates Timely Turn Tables (TTT) as a sole proprietorship. TTT's taxable income during the current year is $80,000. In addition to the TTT income, Tina has the following income and ex...

Q: Troy’s 2015 tax return is audited. The auditor determines that Troy

Troy’s 2015 tax return is audited. The auditor determines that Troy inadvertently understated his ending inventory in calculating his business income. The error creates an additional tax liability o...

Q: Hector is 66 years of age. During the year, his

Hector is 66 years of age. During the year, his wife dies. Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Q: Rebecca and Irving incur the following medical expenses during the current year

Rebecca and Irving incur the following medical expenses during the current year: Medical insurance premiums ………………………..$4,500 Hospital…………………………………………………………...950 Doctors………………………………………………………….1,925 D...

Q: Ramona owns 20% of the stock of Miller, Inc.

Ramona owns 20% of the stock of Miller, Inc. Miller reports the following items for the current year: Sales………………………………………………………………$3,400,000 Gain on sale of stock held for 2 years…………………... 250,000...

Q: Lian is 56 years old and is injured in an automobile accident

Lian is 56 years old and is injured in an automobile accident this year. She is hospitalized for 4 weeks and misses 3 months of work after getting out of the hospital. The costs related to her accid...

Q: Paula lives in Arkansas, a state, which imposes a state

Paula lives in Arkansas, a state, which imposes a state income tax. During 2017, she pays the following taxes: Federal tax withheld………………………………5,125 State income tax withheld………………………1,900 State sa...