Questions from Federal Taxation

Q: Discuss the difference between personal property and personal use property.

Discuss the difference between personal property and personal use property.

Q: Discuss how the cost of material rights enters into the calculation of

Discuss how the cost of material rights enters into the calculation of cost depletion.

Q: Discuss whether land improvements used in a trade or business are eligible

Discuss whether land improvements used in a trade or business are eligible for cost recovery.

Q: At the beginning of current year, Henry purchased a ski resort

At the beginning of current year, Henry purchased a ski resort for $10 million. Henry does not own the land on which the resort is located. The Federal government owns the land, and Henry has the righ...

Q: Identify the three factors reflected in the MACRS tables when the amount

Identify the three factors reflected in the MACRS tables when the amount of cost recovery is determined.

Q: Discuss the computation of cost recovery in the year an asset is

Discuss the computation of cost recovery in the year an asset is placed in service when the mid-quarter convention is being used.

Q: Discuss the computation of cost recovery in the year of sale of

Discuss the computation of cost recovery in the year of sale of an asset when the mid-quarter convention is being used.

Q: Ryan is 39 years old and works as a real estate agent

Ryan is 39 years old and works as a real estate agent. Ryan's marginal tax rate is 24%. Ryan has a traditional (deductible) IRA with a current balance of $80,000. The IRA consists of $60,000 of contri...

Q: Robert purchased and placed in service $100,000 of 7

Robert purchased and placed in service $100,000 of 7-year class assets on August 10 of the current year. He also purchased and placed in service $500,000 of 5-year class assets on November 15 of the c...

Q: Jim owns a very large ranch. A large part of his

Jim owns a very large ranch. A large part of his business is the production and raising of breeding cattle. Jim understands that he is entitled to use MACRS cost recovery on breeding cattle. Identify...