Questions from Federal Taxation

Q: The basis of inherited property is generally the fair market value at

The basis of inherited property is generally the fair market value at the date of death. This enables the person who inherits the property to receive a “step-up” in basis. Use the Internet to find d...

Q: Several years ago, Steve gave his nephew Rashan his coin collection

Several years ago, Steve gave his nephew Rashan his coin collection valued at $12,000 with a basis of $3,000. Steve’s intent was to ensure that Rashan has money for college. Rashan is now a senior i...

Q: Harry and Freddi, a married couple, purchased 100 shares of

Harry and Freddi, a married couple, purchased 100 shares of Opaque Mutual Fund in 2002 for $2,800 as joint tenants with the right of survivorship. Freddi dies during the current year. Fair market va...

Q: How is a sales tax different from an excise tax?

How is a sales tax different from an excise tax?

Q: The country of Boodang is the leading producer of sausage. Boodang

The country of Boodang is the leading producer of sausage. Boodang imposes three taxes on its residents and companies to encourage production of sausage and discourage its consumption. Each applies as...

Q: Leineia owns 1,000 shares of Serous Corporation common stock.

Leineia owns 1,000 shares of Serous Corporation common stock. She paid $26 per share several years ago. On December 31 of the current year, Serous distributes a $5 per share cash dividend. It repor...

Q: During the current year, Horace's personal residence is damaged by a

During the current year, Horace's personal residence is damaged by a tornado. It had an adjusted basis of $40,000 before the tornado. The cost of repairing the damage is $11,000. Horace's insurance...

Q: Jolene owns a dry-cleaning business. During the current year

Jolene owns a dry-cleaning business. During the current year, a rainstorm causes a roof leak that shorts out a dry-cleaning machine. The cost of repairing the machine is $300, none of which is compe...

Q: How much income would an accrual basis taxpayer report in 2017 in

How much income would an accrual basis taxpayer report in 2017 in each of the following situations? a. Toby's Termite Services Inc. provides monthly pest control on a contract basis. Toby sells a 1-y...

Q: Yohanse's aunt Millie gives him a storage warehouse valued at $250

Yohanse's aunt Millie gives him a storage warehouse valued at $250,000 to use in his delivery business. The warehouse has been vacant since Millie inherited it from her grandfather several years ago....