Questions from Federal Taxation

Q: Are commissions paid to acquire securities a deductible expense? If not

Are commissions paid to acquire securities a deductible expense? If not, are they ever deductible?

Q: What is the general rule for determining the basis of gift property

What is the general rule for determining the basis of gift property?

Q: Assume you are a CPA. A new client, Mark,

Assume you are a CPA. A new client, Mark, a local chiropractor, has brought you the financial information for his business at the close of the past year. Previously, Mark prepared his own tax return...

Q: Emelio and Charita are married taxpayers with 2 dependent children. Emelio

Emelio and Charita are married taxpayers with 2 dependent children. Emelio starts a computer consulting business in 2017. Charita works as a real estate broker. During 2017, they have the following...

Q: Charles buys a car for $15,000 that has a

Charles buys a car for $15,000 that has a fair market value of $10,000. Determine the possible tax consequences of each issue that you identify.

Q: Lorene Inc., owns an apartment complex. The terms of Lorene's

Lorene Inc., owns an apartment complex. The terms of Lorene's lease agreement require new tenants to pay the first and last month's rent as well as a cleaning deposit at the inception of the lease....

Q: Kendrick pays a construction company $20,000 to remodel a

Kendrick pays a construction company $20,000 to remodel a house. Determine the possible tax consequences of each issue that you identify.

Q: The Lester Partnership wants to develop a shopping mall on a former

The Lester Partnership wants to develop a shopping mall on a former farm. The farmer wanted $260,000 for the land, $80,000 for the farm buildings, and $130,000 for the farmhouse. Although it wanted o...

Q: Carter wants to retire from his florist business, and his long

Carter wants to retire from his florist business, and his long-time employee, Howard, would like to take over the business. Identify the tax issues posed by the facts presented. Determine the possibl...

Q: For his 18th birthday, Kevin gave his son, Gabe,

For his 18th birthday, Kevin gave his son, Gabe, 5 gold coins which he paid $500 each for 2 years earlier. On Gabe's birthday, coins were selling for $450. One month after his birthday, Gabe sells 2...