Questions from Federal Taxation

Q: Julie, being self-employed, is required to make estimate

Julie, being self-employed, is required to make estimate payments of her tax liability for the year. Her tax liability for 2017 was $ 25,000, and her AGI was less than $150,000. For 2018, Julie ultima...

Q: In 2018, Maria records self-employed earnings of $135

In 2018, Maria records self-employed earnings of $135,000. Using the format illustrated in the tax, compute Maria's self-employment tax liability and the allowable income tax deduction for the self-em...

Q: Anne sold her home for $290,000 in 2018.

Anne sold her home for $290,000 in 2018. Selling expenses were $17,400. She purchased it in 2012 for $200,000. During the period of ownership, Anne did the following: • Deducted $50,500 office-in-home...

Q: Kareem bought a renta1 house in March 2013 for $300,

Kareem bought a renta1 house in March 2013 for $300,000, which $50,000 is allocated to the 1and and $250,000 to the building. Early in 2015, he had a tennis court built in the backyard at a cost of $7...

Q: Nissa owns a building (adjusted basis On January 1, 2018

Nissa owns a building (adjusted basis On January 1, 2018) that she rents to Len, who operates a restaurant in the building. The municipal hea1th department closed the restaurant for three months durin...

Q: Ricky owns stock in Dove Corporation. His adjusted basis for the

Ricky owns stock in Dove Corporation. His adjusted basis for the stock is $90,000. During the year, he receives a distribution from the corporation of $75,000 that is labeled a return of capital (i.e....

Q: Chee purchases Tan, Inc. bonds for $108,000

Chee purchases Tan, Inc. bonds for $108,000 on January 2m 2018. The face value of the bonds is $100,000; the maturity date is December 31, 2022; and the annual interest rate is 5%. Chee will amortize...

Q: Karen Samue1s (Socia1 Security number 123-45-6789)

Karen Samue1s (Socia1 Security number 123-45-6789) makes the following purchases and sales of stock: Assuming that Karen is unable to identify the particular lots that are sold with the original pur...

Q: In 2018, Bianca earned a salary of $164,000

In 2018, Bianca earned a salary of $164,000 from her employer. Determine the amount of FICA taxes and Medicare taxes withheld from her salary.

Q: Helene and Pauline are twin sisters who live in Louisiana and Mississippi

Helene and Pauline are twin sisters who live in Louisiana and Mississippi, respectively. Helene is married to Frank, and Pauline is married to Richard. Frank and Richard are killed in an auto accident...