Questions from Federal Taxation

Q: The specific identification method is important when one invests in mutual funds

The specific identification method is important when one invests in mutual funds. When taxpayers sell part of their holdings, the basis of the surrendered shares can be difficult to compute. Go to the...

Q: Charlene and Alton Dutro had lived in their home for two and

Charlene and Alton Dutro had lived in their home for two and one-half years when they decided to enlarge and remodel the house. However, their architect advised them that more stringent building and p...

Q: Taylor owns a 150-unit motel that was constructed in the

Taylor owns a 150-unit motel that was constructed in the late 1960s. It is located on 10 acres on the main highway leading into the city. Taylor renovated the motel three years ago. Taylor's motel is...

Q: In general, the 45-day identification period and the 180

In general, the 45-day identification period and the 180-day exchange period for like-kind exchanges cannot be extended. Does this rule change if the like-kind property or the taxpayer involved in the...

Q: Elizabeth received the following sources of income in the current year:

Elizabeth received the following sources of income in the current year: What amount must Elizabeth include in gross income on her Federa1 income tax return? a. $650 b. $1,150 c. $1,350 d. $1,700

Q: Several years ago Nicolas, a timber dealer purchased a tract of

Several years ago Nicolas, a timber dealer purchased a tract of land with a substantial stand of trees on it. The land cost $8,000, and the timber cost $250,000. On the first day of 2018, the timber w...

Q: Using the IRS Tax Statistics that can be found at www.

Using the IRS Tax Statistics that can be found at www.irs.govjstatistics, based on adjusted gross income for the most recent year available, determine the amount of net long-term capital gain taxpayer...

Q: Walter is both a real estate developer and the owner and manager

Walter is both a real estate developer and the owner and manager of residentia1 rental real estate. Walter is retiring and is going to sell both the land he is ho1ding for future development and the r...

Q: Your supervisor at your CPA firm has questioned whether the depreciation taken

Your supervisor at your CPA firm has questioned whether the depreciation taken on a building under 168(k) is subject to 1250 depreciation recapture. Find a discussion in the Form 4797 instructions con...

Q: You recently obtained a new client that operates a chain of convenience

You recently obtained a new client that operates a chain of convenience stores that sell food and vehicle fuel. You notice that the company has a customer card program whereby customer purchases of fu...