Questions from Federal Taxation

Q: Teal Company, a single member LLC, owns two warehouses that

Teal Company, a single member LLC, owns two warehouses that were placed in service before 1987. This year, accelerated depreciation on Warehouse A is $36,000 (straight-line depreciation would have bee...

Q: Jacob Patterson cannot make a fully deductible $5,500 IRA

Jacob Patterson cannot make a fully deductible $5,500 IRA contribution because his AGI exceeds the phase out range. Instead, he makes a $3,500 nondeductible IRA contribution to his traditional IRA. De...

Q: In March 2018, Helen Carlon acquired used equipment for her business

In March 2018, Helen Carlon acquired used equipment for her business at a cost of $300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equip...

Q: Sarah was contemplating making a contribution to her traditional IRA in 2017

Sarah was contemplating making a contribution to her traditional IRA in 2017. She determined she would contribute $5,000 in December 2017, but forgot about making the contribution until she was prepar...

Q: Taxpayers who purchase health insurance coverage through the Health Insurance Marketplace may

Taxpayers who purchase health insurance coverage through the Health Insurance Marketplace may be eligible for the premium tax credit under § 36B. Use the IRS's website (www.irs.gov) to read about this...

Q: Find a Federal or state proposal for a soda tax or sweetened

Find a Federal or state proposal for a soda tax or sweetened beverage tax. Apply the AICPA's Principles of Good Tax Policy to support your recommendation for or against the bill.

Q: David is the sole proprietor of a real estate construction business.

David is the sole proprietor of a real estate construction business. He uses the completed contract method on a particular contract that requires 16 months to complete. The contract is for $500,000, w...

Q: Juan owns a business that acquires exotic automobiles that are high-

Juan owns a business that acquires exotic automobiles that are high-tech, state-of-the-art vehicles with unique design features or equipment. The exotic automobiles are not licensed, nor are they set...

Q: Allie, who was an accounting major in college, is the

Allie, who was an accounting major in college, is the owner of a medium-size constn1ction limited liability company. She prepares the company's Schedule C each year. Due to reporting a home constructi...

Q: Jo and Velma are equal owners of JV Company. Jo invests

Jo and Velma are equal owners of JV Company. Jo invests $500,000 cash in the venture. Velma contributes land and a building (basis to her of $125,000, fair market value of $500,000). TI1e entity then...