Questions from Federal Taxation

Q: On January 1, 2009, Stephanie Bridges acquired depreciable real property

On January 1, 2009, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on Januar...

Q: On July 1, 2018, Katrina purchased tax-exempt bonds

On July 1, 2018, Katrina purchased tax-exempt bonds (face value of $75,000) for $82,000. The bonds mature in five years, and the annual interest rate is 6%. The market rate of interest is 2% a. How mu...

Q: Anna received tangible personal property with a fair market value of $

Anna received tangible personal property with a fair market value of $65,000 as a gift in 2016. The donor had purchased the property for $77,000 and had taken $77,000 of depreciation. Anna used the pr...

Q: Miguel receives tangible personal property as an inheritance in 2016. The

Miguel receives tangible personal property as an inheritance in 2016. The property was depreciated by the deceased (Miguel's father), and Miguel will also depreciate it. At the date of the deceased's...

Q: Tan Corporation purchased depreciable tangible personal property for $100,000

Tan Corporation purchased depreciable tangible personal property for $100,000 in 2016 and immediately expensed the entire cost under 179 In 2018, when the property was worth $80,000, Tan distributed i...

Q: Sasha and Tara are married, filing jointly. Their correctly determined

Sasha and Tara are married, filing jointly. Their correctly determined 2018 taxable income is $127,000. This taxable income includes a $5,000 1231 gain from the sa1e of business land that was included...

Q: On August 10, 2016, Jasper purchased business equipment for $

On August 10, 2016, Jasper purchased business equipment for $40,000. On his 2016 tax return, $40,000 of 179 immediate expense was taken on the equipment. On July 14, 2017, Jasper sold the equipment fo...

Q: Adrian has a 2017 Form 4797, line 9 gain of $

Adrian has a 2017 Form 4797, line 9 gain of $56,000. He also has one transaction on his 2017 Form 1040 Schedule D, Part 1 a loss of $58,000. What is Adrian's AGI from these events?

Q: Theresa has a 2017 Form 1040 Schedule D, line 16 gain

Theresa has a 2017 Form 1040 Schedule D, line 16 gain of $45,000. There is also a $45,000 gain on the form's line 19. What is the nature of the gain? What a1ternative tax rate applies to it?

Q: The Cardinal Wholesale Company is an S corporation that began business on

The Cardinal Wholesale Company is an S corporation that began business on March 1, 2018. Robert, a calendar year taxpayer, owns 100% of the Cardinal stock. He has $400,000 taxable income from other so...