Questions from Federal Taxation


Q: Fred and Wilma were divorced in year 1 (before 2019).

Fred and Wilma were divorced in year 1 (before 2019). Fred is required to pay Wilma $12,000 of alimony each year until their child turns 18. At that time, the payment will be reduced to $10,000 per ye...

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Q: Jerry uses a building for business purposes. The building was purchased

Jerry uses a building for business purposes. The building was purchased on April1, year 3, for $124,000. It was sold on October 3, year 6, for $200,000. Accumu1ated depreciation as of the date of sa1e...

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Q: During the year, Brandi had the following transactions: a long

During the year, Brandi had the following transactions: a long term capital gain from the sale of land, a short-term capital l0ss from the sale of stock, and a l0ng-term capital gain from the sale of...

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Q: In January 2018, Sonja deposited $20,000 in a

In January 2018, Sonja deposited $20,000 in a bank in the Bahamas. She earned $500 interest income. She closed the account in December 2018. a. Is Sonya subject to the FBAR reporting requirement? b. I...

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Q: A divorce agreement entered into in 2017 requires Alice to pay her

A divorce agreement entered into in 2017 requires Alice to pay her former spouse $50,000 a year for the next ten years. Will the payments qualify as alimony? Why or why not?

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Q: What determines the appropriate Circuit Court of Appeals for a particular taxpayer

What determines the appropriate Circuit Court of Appeals for a particular taxpayer?

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Q: In May 2018, Hernando a resident of California, has his

In May 2018, Hernando a resident of California, has his 2016 Federal income tax return audited by the IRS. An assessment of additional tax is made because he had inadvertently omitted some rental inco...

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Q: Ted works for Azure Motors, an automobile dealership. All employees

Ted works for Azure Motors, an automobile dealership. All employees can buy a car at the company's cost plus 2%. The company does not charge employees the $ 300 dealer preparation fee that nonemployee...

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Q: Wilbur has been offered a job at a salary that would put

Wilbur has been offered a job at a salary that would put him in the 24% marginal tax bracket. In addition to his salary, he would receive health insurance coverage. Another potential employer does not...

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Q: Eagle Life Insurance Company pays its employees $.30 per mile for

Eagle Life Insurance Company pays its employees $.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost...

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