Questions from Federal Taxation

Q: Geraniun1, Inc., has the following net § 1231 results for

Geraniun1, Inc., has the following net § 1231 results for each of the years shown. What is the nature of the net gain in 2017 and 2018?

Q: Jinjie owns two parcels of land (§ 1231 assets). One parcel

Jinjie owns two parcels of land (§ 1231 assets). One parcel can be sold at a loss of $60,000, and the omer parcel can be sold at a gain of $70,000. Jinjie has no non recaptured § 1231 losses from prio...

Q: Siena Industries (a sole proprietorship) sold three§ 1231 assets

Siena Industries (a sole proprietorship) sold three§ 1231 assets on October 10, 2018. Data on these property dispositions are as follows. a. Determine the an1ount and the character of th...

Q: On December 1, 2016, Lavender Manufacturing Company (a corporation

On December 1, 2016, Lavender Manufacturing Company (a corporation) purchased another company's assets, including a patent. The patent was used in Lavender's manufacturing operations; $49,500 was allo...

Q: Belinda spent the last 60 days of 2018 in a nursing home

Belinda spent the last 60 days of 2018 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 toward the cost of her stay. Belinda also received $...

Q: Caden and Lily are divorced on March 3. 2017. For

Caden and Lily are divorced on March 3. 2017. For financial reasons, however, Lily continues to live in Caden's apartment and receives her support from hin1. Caden does not claim Lily as a dependent o...

Q: Rick Beam has been an independent sales representative for various textile manufacturers

Rick Beam has been an independent sales representative for various textile manufacturers for many years. His product5 consist of soft goods such as tablecloths, curtains, and drapes. Rick's customers...

Q: Christine is a full-rime teacher of the fourth grade at

Christine is a full-rime teacher of the fourth grade at Vireo Academy. During the current year, she spends $1,400 for classroom supplies. On the submission of adequate substantiation, Vireo reimburses...

Q: Ashley (a single taxpayer) is the owner of ABC LLC

Ashley (a single taxpayer) is the owner of ABC LLC. The LLC (a sole proprietor ship) reports QB! of $900,000 and is not a "specified services" business. ABC paid total W-2 wages of $300,000, and the t...

Q: Janet, age 29, is unmarried and is an active participant

Janet, age 29, is unmarried and is an active participant in a qualified retirement plan. Her modified AG! is $65,000 in 2018. a. Calculate the amount Janet can contribute to a traditional IRA and the...