Questions from Federal Taxation

Q: Tyneka inherited 1,000 shares of Aqua, Inc. stock

Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair market value on July 1, 2018 (the date of death), was $45,000. The shares were distributed to Tyneka o...

Q: Surendra's personal residence originally cost $340,000 (ignore land

Surendra's personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. Al the date of conversion, the fair market value of t...

Q: In 2018, Sue exchanges a sport-utility vehicle (adjusted

In 2018, Sue exchanges a sport-utility vehicle (adjusted basis of $16,000; fair market value of $19,500) for cash of $2,000 and a pickup tn1ck (fair market value of $17,500). Both vehicles are for bus...

Q: Egret Corporation, a calendar year C corporation, was formed on

Egret Corporation, a calendar year C corporation, was formed on March 6, 2018, and opened for business on July 1, 2018. After its formation but prior to opening for business, Egret incurred the follow...

Q: Tanya Fletcher owns undeveloped land (adjusted basis of $80,

Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair Decision Making market value of $92,000) on the East Coast. On January 4, 2018, she exchanges Communications it with Lisa Marti...

Q: In 2018, Gray Corporation, a calendar year C corporation,

In 2018, Gray Corporation, a calendar year C corporation, holds a $75,000 charitable contribution carryover from a gift made in 2012. Gray is contemplating a gift of land to a qualified charity in eit...

Q: Steve owns real estate (adjusted basis of $12,000

Steve owns real estate (adjusted basis of $12,000 and fair market value of $15,000), which he uses in his business. Steve sells the real estate for $15,000 to Aubry (a dealer) and then purchases a new...

Q: Cardinal Properties, Inc., exchanges real estate used in its business

Cardinal Properties, Inc., exchanges real estate used in its business along with stock for real estate to be held for investn1ent. The stock transferred has an adjusted basis of $45,000 and a fair mar...

Q: On November 4, 2016, Blue Company acquired an asset (

On November 4, 2016, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2016 and 2017, respectively, Blue rook $642 and $5,128 of cost recove...

Q: Kathy and Bren Ouray married in 2000. They began to experience

Kathy and Bren Ouray married in 2000. They began to experience marital difficulties in 2014 and, in the current year, although they are not legally separated, consider themselves completely estranged....