Questions from Federal Taxation

Q: Your client, Dale, is the president and sole stockholder of

Your client, Dale, is the president and sole stockholder of a steel fabrication company. He has been planning to buy a new piece of equipment for $500,000. He is upset to learn that the $500,000 cos...

Q: Luther, 72, is a lifelong bachelor who has been very

Luther, 72, is a lifelong bachelor who has been very successful in his business and investment endeavors. He realizes that he should begin to do some tax planning for his death. Although he intends...

Q: The tax law provides four methods of cost recovery for assets:

The tax law provides four methods of cost recovery for assets: (1) immediate deduction of the total cost when paid or incurred; (2) deferral of cost until property is sold or otherwise disposed of; (...

Q: Fiona is a professional bass violinist with the St. Paul Symphony

Fiona is a professional bass violinist with the St. Paul Symphony Orchestra. In February of the current year, she purchases at auction for $200,000 an eighteenth-century bass violin built by the reno...

Q: Mitch travels extensively in his job as an executive vice president of

Mitch travels extensively in his job as an executive vice president of Arthur Consulting Company. During the current year, he used frequent flier miles that he had obtained during his business travel...

Q: Is the Section 179 election to expense an incentive to all businesses

Is the Section 179 election to expense an incentive to all businesses to invest in qualifying property?

Q: In general, taxpayers want to depreciate property as rapidly as possible

In general, taxpayers want to depreciate property as rapidly as possible. Under what circumstances might a taxpayer not want to use accelerated depreciation? How can this be done under MACRS?

Q: What is the difference between a taxable entity and a conduit entity

What is the difference between a taxable entity and a conduit entity?

Q: What is the purpose of the acquisition- and disposition-year

What is the purpose of the acquisition- and disposition-year convention?

Q: What acquisition- and disposition-year conventions are used in MACRS

What acquisition- and disposition-year conventions are used in MACRS and to what types of property does each of the conventions apply?