Questions from Federal Taxation

Q: Explain how the § 179 immediate expensing deduction affects the computation of

Explain how the § 179 immediate expensing deduction affects the computation of MACRS cost recovery.

Q: Discuss the treatment of a § 179 expensing carry forward.

Discuss the treatment of a § 179 expensing carry forward.

Q: Discuss the definition of taxable income as it is used in limiting

Discuss the definition of taxable income as it is used in limiting the § 179 expensing amount.

Q: A professional consulting business sells professional tools and equipment and provides associated

A professional consulting business sells professional tools and equipment and provides associated services, such as repair and maintenance, to its customer base. The company's employees include techni...

Q: Discuss how the limits on cost recovery apply to listed property.

Discuss how the limits on cost recovery apply to listed property.

Q: Discuss the tax consequences if the business use percentage of listed property

Discuss the tax consequences if the business use percentage of listed property falls to 50% or lower after the year the property is placed in service.

Q: Bert Johnson, a sole proprietor with no employees, has a

Bert Johnson, a sole proprietor with no employees, has a Keogh profit sharing plan to which he may contribute 25% of his annual earned income. For this purpose, “earned income" is defined as net self-...

Q: Explain the amortization period of a § 197 intangible if the actual

Explain the amortization period of a § 197 intangible if the actual useful life is less than 15 years.

Q: Harold and Bart own 75% of the stock of Orange Motors

Harold and Bart own 75% of the stock of Orange Motors. The other 25% of the stock is owned by Jeb. Orange Motors entered into an agreement with Harold and Bart to acquire all of their Orange stock. In...

Q: In May 2018, George began searching for a trade or business

In May 2018, George began searching for a trade or business to acquire. In anticipation of finding a suitable acquisition, George hired an investment banker to evaluate three potential businesses. He...