Questions from Federal Taxation

Q: Sally owns real property for which the annual property taxes are $

Sally owns real property for which the annual property taxes are $9,000. She sells the property to Kate on March 9, 2018, for $550,000. Kate pays the real property taxes for the entire year on October...

Q: Gray, Inc., a C corporation, has taxable income from

Gray, Inc., a C corporation, has taxable income from operations of $1,452,000 for 2018. It also has a net long-term capital loss of $355,000 from the sale of a subsidiary's stock. The year 2018 is the...

Q: Jenny purchased timber on a 100-acre tract of 1and in

Jenny purchased timber on a 100-acre tract of 1and in South Dakota in March 2016 for $100,000. On January 1, 2018, the timber had a fair market va1ue of $145,000. Because of care1ess cutting in Novemb...

Q: Bob owns a farming sole proprietorship. During the year, Bob

Bob owns a farming sole proprietorship. During the year, Bob sold a milk cow that he had owned for 15 months and a workhorse that he had owned for 66 months. The cow had an adjusted basis of $38,000 a...

Q: Keshara has the following net § 1231 results for each of the

Keshara has the following net § 1231 results for each of the years shown. What would be the nature of the net gains in 2017 and 2018?

Q: Siena Industries (a sole proprietorship) sold three 1231 asset during

Siena Industries (a sole proprietorship) sold three 1231 asset during 2018. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or lo...

Q: Amber Industries (a sole proprietorship) sold three 1231 asset during

Amber Industries (a sole proprietorship) sold three 1231 asset during 2018. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or lo...

Q: Copper Industries (a sole proprietorship) sold three 9 1231 asset

Copper Industries (a sole proprietorship) sold three 9 1231 asset during 2018. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or...

Q: On June 1, 2014, Skylark Enterprises (not a corporation

On June 1, 2014, Skylark Enterprises (not a corporation) acquired a retail store building for $500,000 (with $100,000 being allocated to the land). The store building was 39-year real property, and th...

Q: On May 2, Hannah Weather (Social Security Number: 111

On May 2, Hannah Weather (Social Security Number: 111-22-333) acquired residential rental rea1 estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On Aug...