Questions from Federal Taxation

Q: Fred, who is self employed, travels from Denver to Miami

Fred, who is self employed, travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are $400 (airfare), $150 per day (meals),...

Q: J\1abel and Alan, who are in the 32%

J\1abel and Alan, who are in the 32% tax bracket, recently acquired a fast food franchise. Both of them will work in the business and receive a salary of $175,000. They anticipate that the annual prof...

Q: Franco owns a 600Ai interest in the Dulera LLC. On Decen1ber

Franco owns a 600Ai interest in the Dulera LLC. On Decen1ber 31 of the current tax year, his basis in the LLC interest is S 128,000. The fair market value of the interest is $140,000. Dulera then dist...

Q: Cordero, Inc., is a calendar year taxpayer and a CFC

Cordero, Inc., is a calendar year taxpayer and a CFC for the entire tax year. Yancy Company, a U.S. corporation, owns 75% of Cordero's one class of stock for the entire year. Cordero's Subpart F incom...

Q: Mio was transferred from New York to Germany. He lived and

Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2018. Mio's salary for 2018 is $190,000. What is Mio's foreign earned income exclusion? (In your computatio...

Q: In 2018, Meghann Carlson, a single taxpayer, has QB

In 2018, Meghann Carlson, a single taxpayer, has QB! of $110,000 and modified taxable income of $78,000 (this is also her taxable income before the QB! deduction). Given this information, what is Megh...

Q: Filion operates n1anufacturing facilities in States A and B. Filion has

Filion operates n1anufacturing facilities in States A and B. Filion has neil."us with both states; apportionment factors are .70 for A and .30 for B. Taxable income for the year totaled $150,000, with...

Q: Brenda, who is self employed, travels from Chicago to Barcelona

Brenda, who is self employed, travels from Chicago to Barcelona (Spain) on business. She is gone for 10 days (including 2 days of travel), during which time she spends 5 days conducting business and 3...

Q: Vogel Corporation owns two subsidiaries. Song, located in State A

Vogel Corporation owns two subsidiaries. Song, located in State A, generated $500,000 taxable income this year. Bird, located in State B, generated a $100,000 loss for the period. a. Determine Song's...

Q: In 2018, Robert entertains four key clients and their spouses at

In 2018, Robert entertains four key clients and their spouses at a nightclub. Business discussions occurred over dinner and prior to the entertainment beginning. Expenses were $200 (limo charge), $120...