Questions from Federal Taxation

Q: Dr. Werner is a full-time professor of accounting at

Dr. Werner is a full-time professor of accounting at Pelican University. During the year, he teaches continuing education programs for CPA groups in several cities. He also serves as an expert witness...

Q: Jamie has an undergraduate degree in finance and is employed full-

Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree a. Is the full cost of this education deductible...

Q: In connection with 222 (deduction for qualified tuition and related expenses

In connection with 222 (deduction for qualified tuition and related expenses), comment on the relevance of the following: a. The standard deduction is claimed. b. Enro11ment at a college does not requ...

Q: In each of the following situations, indicate whether the 50%

In each of the following situations, indicate whether the 50% reduction for meals applies. a. Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica. b. The employer ha...

Q: In connection with the office in the home deduction, comment on

In connection with the office in the home deduction, comment on the following: a. The exclusive use requirement. b. The distinction between direct and indirect expenses. c. The effect of the taxpayer'...

Q: William, a high school teacher, earns about $50,

William, a high school teacher, earns about $50,000 each year. In December 2018, he won $1 million in the state lottery. William plans to donate $100,000 to his church. He has asked you, his tax advis...

Q: Cheryl incurred $8,700 of Medical expenses in November 2018

Cheryl incurred $8,700 of Medical expenses in November 2018. On December 5, the clinic where she was treated mailed her the insurance claim form it had prepared for her with a suggestion that she sign...

Q: Jayden, a calendar year taxpayer paid $16,000 in

Jayden, a calendar year taxpayer paid $16,000 in Medical expenses and sustained a $20,000 casualty loss in 2018 (the loss occurred in a Federally declared disaster area). He expects $12,000 of the med...

Q: In 2005, Douglas purchased an office building for $500,

In 2005, Douglas purchased an office building for $500,000 to be used in his business. He sells the building in the current tax year. Explain whether his recognized gain or loss for regular income tax...

Q: On February 1 of year 0, John received a nonqualified stock

On February 1 of year 0, John received a nonqualified stock option to purchase 100 shares of his employer's stock for $10 per share. At the time John received the option, it was selling for $5 per sha...