Questions from Federal Taxation

Q: What are the tax implications of a taxpayer's self-construction of

What are the tax implications of a taxpayer's self-construction of assets for use in the taxpayer's trade or business?

Q: List some costs that are normally expensed that must be capitalized when

List some costs that are normally expensed that must be capitalized when a taxpayer self-constructs an asset for use in a trade or business.

Q: Why are gifts of property not income to the person receiving the

Why are gifts of property not income to the person receiving the gift?

Q: Determine how much interest income Later Federal Loan Company, a cash

Determine how much interest income Later Federal Loan Company, a cash basis taxpayer, must recognize on each of the following loans in 2017: a. A $10,000, 8.5%, 6-month loan made on October 1, 2017....

Q: A person who receives property as a gift makes no investment to

A person who receives property as a gift makes no investment to receive the property. Why is a basis assignment to the gift property necessary even though the donee has no investment in the property?...

Q: Janine is planning to make a gift of 50 shares of Acran

Janine is planning to make a gift of 50 shares of Acran, Inc., stock to her nephew to help with his college tuition. The stock cost Janine $5,000, and its current value is $4,000. Explain to Janine...

Q: A taxpayer has $95,000 of taxable income for the

A taxpayer has $95,000 of taxable income for the current year. Determine the total tax, the marginal tax rate, and the average tax rate if the taxpayer is a a. Single individual b. Married couple c....

Q: What is the general rule for determining when the holding period of

What is the general rule for determining when the holding period of an asset begins?

Q: What type(s) of asset acquisitions do not follow the

What type(s) of asset acquisitions do not follow the general rule for determining when the holding period of the asset begins?

Q: When is the alternate valuation date for valuing inherited property? When

When is the alternate valuation date for valuing inherited property? When elected, are all assets valued on the alternate date? Explain.