Questions from Federal Taxation

Q: Lorraine is an avid baseball card collector. She gives a card

Lorraine is an avid baseball card collector. She gives a card dealer $50 and a Roger Maris card for a Sammy Sosa card. Identify the tax issue(s) posed by the facts presented. Determine the possible...

Q: Oscar and Harriet agree to exchange apartment buildings and the mortgages on

Oscar and Harriet agree to exchange apartment buildings and the mortgages on the buildings, with any difference in value to be paid in cash. Particulars of their respective buildings are as follows:...

Q: On July 8, 2017, Cynthia and her daughter Constance agree

On July 8, 2017, Cynthia and her daughter Constance agree to exchange land they held for investment. Both tracts are worth $18,000. Cynthia acquired her land 4 years earlier for $9,000. Constance p...

Q: Walker Corporation acquires a business automobile with a fair market value of

Walker Corporation acquires a business automobile with a fair market value of $20,000 by trading in an old automobile and giving $14,000. Walker paid $12,000 for the old automobile, which has an adjus...

Q: Which of the following are qualified replacement properties for properties involuntarily converted

Which of the following are qualified replacement properties for properties involuntarily converted? Explain. a. The insurance proceeds from a warehouse destroyed by a fire are used to purchase a manu...

Q: Which of the following are qualified replacement properties for properties involuntarily converted

Which of the following are qualified replacement properties for properties involuntarily converted? Explain. a. The city of Marble River announces plans to condemn Heima's rental apartment complex on...

Q: What is the tax advantage of selling a Section 1231 property at

What is the tax advantage of selling a Section 1231 property at a gain?

Q: Grant Industries' warehouse is condemned by the city on August 18,

Grant Industries' warehouse is condemned by the city on August 18, 2017. Because of widespread publicity leading up to the condemnation, Grant anticipates it and purchases a replacement warehouse on...

Q: Refer to the facts of problem 44. Write a letter to

Refer to the facts of problem 44. Write a letter to Grant Industries explaining why it might want to recognize the entire gain on the condemnation. Data from Problem 44: Grant Industries' warehouse...

Q: One of Reddy's Fancy Dog Food factories is destroyed by a tornado

One of Reddy's Fancy Dog Food factories is destroyed by a tornado. The factory has an adjusted basis of $375,000. Reddy's receives $540,000 from its insurance company to cover the loss. What is the...