Questions from Federal Taxation

Q: Bob provides more than half of his mother's support. His mother

Bob provides more than half of his mother's support. His mother earns $6,000 per year as a hairdresser. She lives in an apartment across town. Bob is unmarried and has no children. What is Bob's most...

Q: Jane is 20 years old and is a sophomore at Lake University

Jane is 20 years old and is a sophomore at Lake University. She is a full-time student and does not have any gross income. Jane spends the holidays and summers at home with her parents. Her total supp...

Q: In the current tax year, Blake Smith provided more than half

In the current tax year, Blake Smith provided more than half of the support for his cousin, niece, and a close family friend. Blake lives alone and sends a monthly support check to each person. None o...

Q: A piece of depreciable machinery is sold. It has been held

A piece of depreciable machinery is sold. It has been held for three years and qualifies as Section 1231 property. The selling price is greater than the adjusted basis but less than the original purch...

Q: Wally, Inc., sold the following three personal property asset5 in

Wally, Inc., sold the following three personal property asset5 in year 6: What is Wally's net Section 1231 gain or loss in year 6? a. $500 loss b. $300 gain c. $800 gain d. $1,600 gain

Q: Net Section 1231 losses are: a. Deducted as a

Net Section 1231 losses are: a. Deducted as a capital loss against other capital gains and nothing against ordinary income. b. Deducted as a capital loss against other capital gains and up to $3,000...

Q: Section 1245 recapture applies to which of the following? a

Section 1245 recapture applies to which of the following? a. Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line. b. Section 1231 personal property sold...

Q: Section 1250 recapture applies to which of the following? a

Section 1250 recapture applies to which of the following? a. Section 1231 real property sold at a gain with accumulated depreciation in excess of straight line. b. Section 1231 personal property sold...

Q: Stephen is a graduate student at West University. He works part

Stephen is a graduate student at West University. He works part time at the campus coffee shop earning $5,000 this year. Stephen also receives a $25,000 scholarship that pays for his tuition, fees, an...

Q: For many years, Sophie has owned and operated several apartn1ent buildings

For many years, Sophie has owned and operated several apartn1ent buildings. In 2012, upon the advice of her attorney, Sophie transferred the apartment buildings to a newly created corporation. Her mai...