Questions from Federal Taxation

Q: Several years ago John Johnson, who is in the 1ending business

Several years ago John Johnson, who is in the 1ending business, loaned Sara Communications $30,000 to purchase an automobile to be used for personal purposes. In August of the current year, Sara filed...

Q: Sally is in the business of purchasing accounts receivable. Last year

Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivab1e with a face value of $80,000 for $60,000. During the current year, Sally settled the account...

Q: Jocelyn and Esteban file a joint return. For the current year

Jocelyn and Esteban file a joint return. For the current year, they had the following items: Determine their AGI for the current year.

Q: Heather owns a two-story building. The building is used

Heather owns a two-story building. The building is used 40% for business use and 60% for persona1 use. During 2018, a fire caused major damage to the building and its contents. Heather purchased the b...

Q: On July 24 of the current year Sam Smith was inv01ved in

On July 24 of the current year Sam Smith was inv01ved in an accident with Communications his business use automobile. Sam had purchased the car for $30,000. The automobile had a fair market va1ue of $...

Q: During 2018, Leisel, a single taxpayer, operates a sole

During 2018, Leisel, a single taxpayer, operates a sole proprietorship in which she matierally participates. Her proprietorship generates gross income of $142,000 and deductions of $420,000, resulting...

Q: Timothy Gates and Prada Singh decide to form a new company,

Timothy Gates and Prada Singh decide to form a new company, TG PS LLC (a mu1timember LLC that will report its operations as a partnership). Timothy is married, and Prada is sing1e. Each contributes $4...

Q: Sam, age 45, is single. For 2018, he

Sam, age 45, is single. For 2018, he has the following items: a. Determine Sam's taxab1e income for 2018. b. Determine Sam's NOL for 2018.

Q: Xinran, who is married and files a joint return, ow

Xinran, who is married and files a joint return, ow ns a grocery store. In 2018 his gross sales were $276,000, and operating expenses were $320,000. Other items on his 2018 return were as follows: I...

Q: During 2018, Rick and his wife, Sara had the following

During 2018, Rick and his wife, Sara had the following items of income and expense to report: a. Assuming that Rick and Sara file a joint return, what is their taxable income for 2018? b. What is th...