Questions from Federal Taxation

Q: Maria meets all of the requirements (subdivided realty). In 2018

Maria meets all of the requirements (subdivided realty). In 2018, she begins selling lots and sells four separate lots to four different purchasers. She also sells two contiguous lots to another purch...

Q: Melaney has had a bad year with her investments. She 1ent

Melaney has had a bad year with her investments. She 1ent a friend $8,000; the friend did not repay the loan when it was due and then declared bankruptcy. The 10an is totally uncollectible. Me1aney a1...

Q: Benny purchased $400,000 of Peach Corporation face value bonds

Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2017. The bonds had been issued with $80,000 of original issue discount because Peach was in financial diffi...

Q: Hilde purchased all of the rights to patent on a new garden

Hilde purchased all of the rights to patent on a new garden tool developed by a friend of hers who was an amateur inventor. The inventor had obtained the patent rights, set up a manufacturing company...

Q: Consuela was a tenant in a campus apartment. She is a

Consuela was a tenant in a campus apartment. She is a student at State University. Her lease began on August 1, 2018, and was due to expire on July 31, 2019. However, her landlord sold the building, a...

Q: Roger inherited 100 shares of Periwink1e stock when his mother, Emily

Roger inherited 100 shares of Periwink1e stock when his mother, Emily, died Emily had acquired the stock for a total of $60,000 on November 15, 2014. She died on August 10, 2018, and the shares were w...

Q: Phil and Susan Hammond are married taxpayers filing a joint return.

Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2017 Phil does not work due to a disability, but he is a buyer...

Q: For 2018, Ashley has gross income of $38,350

For 2018, Ashley has gross income of $38,350 and a $5,000 long-term capital loss. She claims the standard deduction. Ashley is 35 years old and unmarried with two dependent children. How much of Ashle...

Q: For 2018, Wilma has properly determined taxable income of $36

For 2018, Wilma has properly determined taxable income of $36,000, including $3,000 of unrecaptured 1250 gain and $82,000 of 0%/15%/20% gain. Wilma qualifies for head-of-household filing status. Compu...

Q: Asok’s AGI for 2018 is $133,050. Included in

Asok’s AGI for 2018 is $133,050. Included in this AGI is a $45,000 25% long term capital gain and a $13,000 0%/15%/20% long term capital gain. Asok is sing1e and uses the standard deduction. Compute h...