Questions from Federal Taxation

Q: On December 28, 2018, Kramer sells 150 shares of Lavender

On December 28, 2018, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2019, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis...

Q: Hun age 93, has accumulated substantia1 assets during his life.

Hun age 93, has accumulated substantia1 assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson Hun has been in ill hea1th for the past...

Q: Kareem owns a pickup truck that he uses exclusively in his business

Kareem owns a pickup truck that he uses exclusively in his business. The adjusted basis is $22,000, and the fair market value is $14,000. In March 2018, Kareem exchanges the truck for another truck (w...

Q: In two unrelated transactions, Laura exchanges property that qualifies for like

In two unrelated transactions, Laura exchanges property that qualifies for like-kind exchange treatment. In the first exchange, Laura gives up land purchased in May 2016 (adjusted basis of $20,000; fa...

Q: Stephanie’s owns a land (adjusted basis of $90,000

Stephanie’s owns a land (adjusted basis of $90,000; fair market value of $125,000) that she uses in her business. She exchanges it for another parce1 of 1 and (worth $100,000) and stock (worth $25,000...

Q: Cabel’s warehouse, which has an adjusted basis of $380,

Cabel’s warehouse, which has an adjusted basis of $380,000 and a fair market value of $490,000 is condemned by an agency of the Federal government to make way for a highway interchange. The initial co...

Q: Wanda, a calendar year taxpayer, owned a building (adjusted

Wanda, a calendar year taxpayer, owned a building (adjusted basis of $250,000) in which she operated a bakery that was destroyed by fire in December 2018. She receives insurance proceeds of $290,000 f...

Q: Karl purchased his residence on January 2, 2017, for $

Karl purchased his residence on January 2, 2017, for $260,000, after having lived in it during 2016 as a tenant under a lease with an option to buy clause. On August 1, 2018, Karl sells the residence...

Q: Cisco, a calendar year taxpayer who is age 63, owns

Cisco, a calendar year taxpayer who is age 63, owns a residence in which he has lived for 21 years. The residence is destroyed by fire on August 8, 2018. The adjusted basis is $190,000, and the fair m...

Q: Determine the additional Medicare taxes for the individuals. a.

Determine the additional Medicare taxes for the individuals. a. Mario, who is single, earns wages of $440,000 in 2018. b. George and Shirley are married and file a joint return in 2018. During the yea...