Questions from Federal Taxation

Q: What incentive does a taxpayer have to disguise a property settlement as

What incentive does a taxpayer have to disguise a property settlement as an alimony payment?

Q: Hank retires this year after working 30 years for Local Company.

Hank retires this year after working 30 years for Local Company. Per the terms of his employment contract, Hank is to receive a pension of $600 per month for the rest of his life. During the current...

Q: Ratliff Development Corporation purchases a tract of land in 2016 at a

Ratliff Development Corporation purchases a tract of land in 2016 at a cost of $120,000 and subdivides the land into 30 building lots. The cost of subdividing is $6,000. In 2016, Ratliff installs ro...

Q: The Rosco Partnership purchases a rental property in 2012 at a cost

The Rosco Partnership purchases a rental property in 2012 at a cost of $150,000. From 2012 through 2017, Rosco deducts $14,000 in depreciation on the rental. The partnership sells the rental propert...

Q: Reddy owns common stock with a market value of $30,

Reddy owns common stock with a market value of $30,000. The stock pays a cash dividend of $1,200 per year (a 4% annual yield). Reddy is considering selling the stock, which she purchased 13 years ag...

Q: How much income should the taxpayer recognize in each of the following

How much income should the taxpayer recognize in each of the following situations? Explain. a. Julius owns a 25% interest in the Flyer Company, which is organized as a partnership. During the current...

Q: What is the purpose of the exemption deduction?

What is the purpose of the exemption deduction?

Q: Devi is the chief executive officer of Nishida Limited. Devi owns

Devi is the chief executive officer of Nishida Limited. Devi owns 20% of the common stock of Nishida. During the current year, Devi’s salary is $60,000 and he receives a $30,000 bonus. Nishida has...

Q: Pablo wins a new automobile on a television game show. The

Pablo wins a new automobile on a television game show. The car has a listed sticker price of $31,500. A dealer advertises the same car for $30,000. How much income does Pablo have from the receipt...

Q: Determine the amount of income that must be recognized in each of

Determine the amount of income that must be recognized in each of the following cases: a. Ramona is a production supervisor for White Company. During the current year, her division had no accidents,...