Questions from Federal Taxation

Q: On July 1, 2014, Rex purchases a new automobile for

On July 1, 2014, Rex purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2014, 19,000 miles in 2015, 20,000 miles in 2016, and 15,000...

Q: Arnold, who is sing1e, sold his principa1 residence on April

Arnold, who is sing1e, sold his principa1 residence on April 10, 2018, and excluded the realized gain under 121 (exclusion on the sale of a principal residence). On April 12, 2018, he purchased anothe...

Q: Your client is a new retailer who often issues store gift (

Your client is a new retailer who often issues store gift (debit) cards to customers in lieu of a cash refund. You recall that the IRS issued a Revenue Procedure that provided that the prepaid income...

Q: Lottery winnings are taxable for Federal income tax purposes What many lottery

Lottery winnings are taxable for Federal income tax purposes What many lottery hopefuls forget to factor into their tax considerations are that lottery winnings are also taxable in many states. Search...

Q: Go to the web page of a consulting firm that offers counseling

Go to the web page of a consulting firm that offers counseling services to individuals as they negotiate the terms of a divorce. What specific tax related services do these firms offer? Suggest a new...

Q: The employees of the city of Greenville must make mandatory contributions to

The employees of the city of Greenville must make mandatory contributions to the city's postretirement health benefit plan. The employees' contributions are placed in a trust and are used exclusively...

Q: Your client, John Butler, is an avid Houston Astros fan

Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros' home opener, as a result of a random drawing of those in attendance at the game, John won 300 Shipley Do-Nut coupons....

Q: Your client works for a defense contractor and was assigned to work

Your client works for a defense contractor and was assigned to work on a military base in Australia. As a condition of his employment, he was required to live in housing that was provided to military...

Q: Employers often use the internet as a means of attracting applications from

Employers often use the internet as a means of attracting applications from potential employees. Locate an internet site offering employment opportunities, ideally one provided by a well-known corpora...

Q: Rex and Agnes Harrell purchased a beach house at Duck, North

Rex and Agnes Harrell purchased a beach house at Duck, North Carolina, in early 2018. Although they intended to use the beach house occasionally for recreational purposes, to help pay the mortgage pay...