Questions from Federal Taxation

Q: Aldo has just been audited by them He does not agree with

Aldo has just been audited by them He does not agree with the agent's findings but believes that he has only two choices: pay the proposed deficiency or resort to the courts. Do you agree with Aldo's...

Q: In 2018, Larry and Susan each invest $10,000

In 2018, Larry and Susan each invest $10,000 in separate investment activities They each incur deductible expenses of $800 associated with their respective investments. Explain why Larry's expenses mi...

Q: Regarding the statute of limitations on additional assessments of tax by the

Regarding the statute of limitations on additional assessments of tax by the IRS, determine the applicable period in each of the following situations. Assume a calendar year individual with no fraud o...

Q: Wally, Inc., sold the following three personal property assets in

Wally, Inc., sold the following three personal property assets in year 6: What is Wally's net Section 1231 gain or loss in year 6? a. $500 loss b. $700 loss c. $1,200 loss d. $1,200 gain

Q: Brianna, a calendar year taxpayer, files her income tax return

Brianna, a calendar year taxpayer, files her income tax return for 2017 on February 3, 2018. Although she makes repeated inquiries, she does not receive her refund from the IRS until May 28, 2018. Is...

Q: Nanette is a first-grade teacher. Potential deductions are charitable

Nanette is a first-grade teacher. Potential deductions are charitable contribution of $800, personal property taxes on her car of $240, and various supplies purchased for use in her classroom of $225...

Q: In a determination of whether a business expense is deductible the reasonableness

In a determination of whether a business expense is deductible the reasonableness requirement applies only to salaries. Evaluate this statement.

Q: For tax year 2015, the IRS assesses a deficiency against David

For tax year 2015, the IRS assesses a deficiency against David for 5000,000. Disregarding the interest component, what is David's penalty if the deficiency is attributable to: a. Negligence? b. Fraud?...

Q: In March 2018, Jim asks you to prepare his Federal income

In March 2018, Jim asks you to prepare his Federal income tax returns for tax years 2015, 2016, and 2017. 1n discussing this matter with him, you discover that he also has not filed for tax year 2014....

Q: Dave uses the second floor of a building for his residence and

Dave uses the second floor of a building for his residence and the first floor for his business. The uninsured building is destroyed by fire. Are the tax consequences the same for each part of the bui...