Questions from Federal Taxation

Q: Jayda maintains an office in her home that comprises 8% (

Jayda maintains an office in her home that comprises 8% (200 square feet) of total floor space. Gross income for her business is $42,000, and her residence expenses are as follows: Real property taxes...

Q: In 2021, Meghann, a single taxpayer, has QBI of

In 2021, Meghann, a single taxpayer, has QBI of $110,000 and modified taxable income of $78,000 (this is also her taxable income before the QBI deduction). Given this information, what is Meghann’s QB...

Q: In May 2021, Hernando, a resident of California, has

In May 2021, Hernando, a resident of California, has his 2019 Federal income tax return audited by the IRS. An assessment of additional tax is made because he inadvertently omitted some rental income....

Q: Valentino is a patient in a nursing home for 45 days of

Valentino is a patient in a nursing home for 45 days of 2021. While in the nursing home, he incurs total costs of $13,500. Medicare pays $8,000 of the costs. Valentino receives $15,000 from his long-t...

Q: In 2021, Ava, an employee, has AGI of $

In 2021, Ava, an employee, has AGI of $58,000 and the following itemized deductions: Home office expenses …………………………………………………………….$1,200 Union dues and work uniforms ……………………………………………………350 Unreimburs...

Q: In 2018, José purchased a house for $325,000

In 2018, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2021, when the fair market value of the...

Q: Orange Corporation acquired new office furniture on August 15, 2021,

Orange Corporation acquired new office furniture on August 15, 2021, for $130,000. Orange does not elect immediate expensing under § 179. Orange claims any available additional first-year depreciation...

Q: Selma operates a contractor’s supply store. She maintains her books using

Selma operates a contractor’s supply store. She maintains her books using the cash method. At the end of 2021, her accountant computes her accrual basis income that is used on her tax return. For 2021...

Q: Juan acquires a new 5-year class asset on March 14

Juan acquires a new 5-year class asset on March 14, 2021, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He does not claim any a...

Q: On August 2, 2021, Wendy purchased a new office building

On August 2, 2021, Wendy purchased a new office building for $3,800,000. On October 1, 2021, she began to rent out office space in the building. On July 15, 2025, Wendy sold the office building. a. De...