Questions from Federal Taxation

Q: Which of the following are related parties under§ 267' Father

Which of the following are related parties under§ 267' Father Brother Niece Uncle Cousin Grandson Corporation and a 45% shareholder Corporation and a 55% shareholder

Q: Robin Corporation is owned as follows: /

Robin Corporation is owned as follows: Robin is on the accrual basis, and Isabelle and Peter are on the cash basis. Isabelle and Peter each loaned Robin Corporation $40,000 out of their separate fun...

Q: Jake and Mary Snow, are residents of the state of New

Jake and Mary Snow, are residents of the state of New York. They are cash basis taxpayers and file a joint return for the calendar year. Jake is a licensed master plumber. Two years ago, Jake entered...

Q: Abby, a single taxpayer, purchased 10,000 shares of

Abby, a single taxpayer, purchased 10,000 shares of§ 1244 stock several years ago at a cost of $20 per share. In November of the current year, Abby receives an offer to sell the stock for $12 per shar...

Q: Olaf lives in the state of Minnesota. A tornado hit the

Olaf lives in the state of Minnesota. A tornado hit the area and damaged his home and automobile. Applicable information is as follows: Because of the extensive damage caused by the tornado, the Pre...

Q: In 2015, John opened an investment account with Randy Hansen,

In 2015, John opened an investment account with Randy Hansen, who held Critical Thinking himself out to the public as an investment adviser and securities broker. John contributed $200,000 to the acco...

Q: What purpose is served by Form 8857? Read the directions to

What purpose is served by Form 8857? Read the directions to the form, and see IRS Publication 971 for additional information.

Q: In 2017, Fred invested $50,000 in a general

In 2017, Fred invested $50,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the partnership losses is $35,000 in 2017 and $25,000 in 2018, how,...

Q: Dr. Randolph, a cash basis taxpayer, knows that she

Dr. Randolph, a cash basis taxpayer, knows that she \Viii be in a lower marginal tax bracket next year. To take advantage of the expected decrease in the marginal tax rate, Randolph instructs her off...

Q: A number of years ago, Kay acquired an interest in a

A number of years ago, Kay acquired an interest in a partnership in which she is nor a material participant. Kay's basis in her partnership interest at the beginning of 2017 is $40,000. Kay's share of...