Questions from Federal Taxation


Q: Tim is the vice president of western operations for Maroon Oil Company

Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an emp1oyer-owned home, which is three b10cks from his company offic...

See Answer

Q: In January 2018, Ezra purchased 2,000 shares of Gold

In January 2018, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In D...

See Answer

Q: Tonya, who lives in California inherited a $100,000

Tonya, who lives in California inherited a $100,000 state of California bond in 2018. Her marginal Federal tax rate is 35%, and her marginal state tax rate is 5%. The California bond pays 3.3% interes...

See Answer

Q: Lynn Swart’z husband died three years ago. Her parents have income

Lynn Swart’z husband died three years ago. Her parents have income of $200,000 a year and what to ensure that funds will be available for the education of Lynn's 8-year-old son, Eric. Lynn is currentl...

See Answer

Q: Starting in 2007, Chuck and Luane have been purchasing series EE

Starting in 2007, Chuck and Luane have been purchasing series EE bonds in their names to use for the higher education for their daughter Susie, who currently is age 18. During the year, they cash in $...

See Answer

Q: Daniel, age 38, is single and has the following income

Daniel, age 38, is single and has the following income and expenses in 2018 a. Calculate Daniel's AGI. b. Should Daniel itemize his deductions from AGI or take the standard deduction? Explain.

See Answer

Q: Janice, age 22, is a student who earns $10

Janice, age 22, is a student who earns $10,000 working part-time at the collage ice cream shop in 2018. She has no other income. Her medica1 expenses for the year total $3,000. During the year, she su...

See Answer

Q: A list of the items that Faith sold and the losses she

A list of the items that Faith sold and the losses she incurred during the current tax year is as follows: She also had a theft loss of $1,500 on her uninsured business use car. Calculate Faith's de...

See Answer

Q: Lopez acquired a building on June 1, 2013, for $

Lopez acquired a building on June 1, 2013, for $1 million. Calculate Lopez's cost recovery deduction for 2018 if the building is: a. Classified as residential rental real estate. b. Classified as nonr...

See Answer

Q: Suzzane, a single taxpayer, operates a printing business as a

Suzzane, a single taxpayer, operates a printing business as a sole proprietor. The business has two employees who are paid a total of $90,000 during 2018. Assume that the business has no significant a...

See Answer