Questions from Federal Taxation

Q: Answer the following independent questions with respect to traditional IRA contributions for

Answer the following independent questions with respect to traditional IRA contributions for 2018: a. Juan, age 41, earns a salary of $28,000 and is not an active participant in any other qualified pl...

Q: Jimmy establishes a Roth IRA at age 47 and contributes a total

Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account is now worth $112,000. How much of these funds may Jimmy withdraw tax-free?

Q: Dana, age 54, has a traditional deductible IRA with an

Dana, age 54, has a traditional deductible IRA with an account balance of $107,600, of which $77,300 represents contributions and $30,300 represents earnings. In 2018, she converts her traditional IRA...

Q: Louis is a participant in a SIMPLE IRA of his employer Brown

Louis is a participant in a SIMPLE IRA of his employer Brown, Inc. During 2018， he contributes 8% of his salary of $63,000, and his employer contributes 3%. What is the total amount that will be veste...

Q: Gene, age 34, and Beth, age 32, have

Gene, age 34, and Beth, age 32, have been married for nine years. Gene, who is a college student, works part-time and earns $1,500. Beth is a high school teacher and earns a salary of $34,000. Their A...

Q: Samuel, age 32, loses his job in a corporate downsizing

Samuel, age 32, loses his job in a corporate downsizing. As a result of his termination, he receives a distribution of the balance in his 401(k) account of $20,000 ($25,000 一 $5,000 Federal income tax...

Q: Dan, a professional basketball player, is to receive a bonus

Dan, a professional basketball player, is to receive a bonus of $2 million for signing an employment contract. An NQDC plan is established to postpone the income beyond Dan's peak income years. In 201...

Q: Mandy and Timothy exchange real property in a like-kind exchange

Mandy and Timothy exchange real property in a like-kind exchange. Mandy receives real property with a fair market value of $78,000 and transfers real property worth $70,000 (adjusted basis of $28,000)...

Q: Grace is an officer of a local bank that merges with a

Grace is an officer of a local bank that merges with a national bank, resulting in a change of ownership. She loses her job as a result of the merger, but she receives a cash settlement of $590,000 fr...

Q: On February 20, 2013, Tom (an executive of Hawk

On February 20, 2013, Tom (an executive of Hawk Corporation; a calendar year corporation) purchased 100 shares of Hawk stock (selling at $20 a share) for $10. A condition of the transaction was that T...