Questions from Federal Taxation

Q: Find a newspaper article that discusses tax planning for casualty losses when

Find a newspaper article that discusses tax planning for casualty losses when a Federal disaster area designation is made. Does the article convey the pertinent tax rules correctly? Then list all of t...

Q: A taxpayer is considering two alternative investments. A Series EE U

A taxpayer is considering two alternative investments. A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and intere...

Q: Apply the tax benefit rule to determine the amount of the state

Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2021. a. Myrna and Geoffrey filed a joint tax return in 2020. Their AGI was $85,000, and i...

Q: Use information about individual income tax returns available at the IRS Tax

Use information about individual income tax returns available at the IRS Tax Stats website (irs.gov/statistics/soi-tax-stats-individual-income-tax-returns) to find data on the number of individuals wh...

Q: Lara uses the standard mileage method for determining auto expenses. During

Lara uses the standard mileage method for determining auto expenses. During 2021, she used her car as follows: 9,000 miles for business, 2,000 miles for personal use, 2,500 miles for a move to a new j...

Q: A qualified expense is not deductible unless there is appropriate substantiation to

A qualified expense is not deductible unless there is appropriate substantiation to document it. Find two websites and/or articles that provide (1) guidance on the types of substantiation required for...

Q: Carlos is retired and receives Social Security benefits. During the year

Carlos is retired and receives Social Security benefits. During the year, Carlos appeared on a television game show and won $5,000. By how much will the prize increase his gross income?

Q: Many states have their income tax calculations “piggyback” the Federal

Many states have their income tax calculations “piggyback” the Federal income tax calculation. In other words, these states’ income tax calculations incorporate many of the Federal calculations and de...

Q: In 2021, Robert takes four key clients and their spouses out

In 2021, Robert takes four key clients and their spouses out to dinner at a local restaurant. Business discussions occurred over dinner. Expenses were $700 (drinks and dinner) and $140 (tips to server...

Q: Charlie purchased an apartment building on November 16, year 1,

Charlie purchased an apartment building on November 16, year 1, for $1,000,000. Determine the cost recovery for year 20. a. $36,360 b. $32,100 c. $45,500 d. $331,850