Questions from Federal Taxation

Q: Lilia is going to be subject to the AMT in 2018.

Lilia is going to be subject to the AMT in 2018. She owns an investment building and is considering disposing of it and investing in other realty. Based on an appraisal of the building's value, the re...

Q: Flicker, a single men1ber LLC, acquired a passive activity this

Flicker, a single men1ber LLC, acquired a passive activity this year. Gross income from operations of the activity was S 160,000. Operating expenses, not including depreciation, were $122,000. Regular...

Q: Sammy and Monica, both age 67, incur and pay n1edical

Sammy and Monica, both age 67, incur and pay n1edical expenses in excess of insurance reimbursements during the year as follows. Sammy and Monica's 2018 AG! is $130,000. They file a joint return. C...

Q: Turtle, a C corporation, reports taxable income of $200

Turtle, a C corporation, reports taxable income of $200,000 before paying salaries to the two equal shareholder-employees, Britney and Alan. Turtle follows a policy of distributing all after-tax earni...

Q: Rover Corporation would like to transfer excess cash to its sole shareholder

Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is in the 21 % bracket. Because Aleshia's c...

Q: Ann and Bill were on the list of a local adoption agency

Ann and Bill were on the list of a local adoption agency for several years, seeking to adopt a child. Finally, in 2017, good news comes their way, and an adoption seems imminent. They paid qualified a...

Q: Gabriel, age 40, and Emma, age 33. are

Gabriel, age 40, and Emma, age 33. are married with two dependents. They recorded AG! of $250,000 in 2018 that included net investment income of $3,000 and gambling winnings of $2,500. The couple incu...

Q: Chuck is single, has no dependents, and does not itemize

Chuck is single, has no dependents, and does not itemize deductions. In 2018, he reports taxable income of $320,000. His tax preferences total $51,000. What is Chuck's AMTI for 2018?

Q: Esther owns a large home on the East Coast. Her home

Esther owns a large home on the East Coast. Her home is surrounded by large, mature oak trees that significantly increase the value of her home. In August 2017, a hurricane damaged many of the trees s...

Q: Included in Alice's regular taxable income and in her AMT base is

Included in Alice's regular taxable income and in her AMT base is a $300,000 capital gain on the sale of stock she owned for three years. Alice is in the 20% tax bracket for net capital gains for regu...