Questions from Federal Taxation

Q: Stella Watters is a CPA who operates her own accounting firm (

Stella Watters is a CPA who operates her own accounting firm (Watters CPA LLC). As a single-member LLC, Stella reports her accounting firm operations as a sole proprietor. Stella has QBI from her acco...

Q: Naya purchased a new computer (5-year property) on

Naya purchased a new computer (5-year property) on June 1, 2021, for $4,000. Naya could use the computer 100% of the time in her business, or she could allow her family to use the computer as well. Na...

Q: On June 5, 2020, Leo purchased and placed in service

On June 5, 2020, Leo purchased and placed in service a new car that cost $75,000. The business use percentage for the car is always 100%. Leo does not claim any available additional first-year depreci...

Q: In 2021, Muhammad purchased a new computer for $16,

In 2021, Muhammad purchased a new computer for $16,000. The computer is used 100% for business. Muhammad did not make a § 179 election with respect to the computer. He does not claim any available add...

Q: Using the legend provided, classify each of the following statements:

Using the legend provided, classify each of the following statements: a. Sue writes a $707 check for a charitable contribution on December 26, 2021, but does not mail the check to the charitable organ...

Q: Shanna, a calendar year and cash basis taxpayer, rents property

Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $8,400 rent on April 1, 2021, for the 12 months end...

Q: Oleander Corporation, a calendar year entity, begins business on March

Oleander Corporation, a calendar year entity, begins business on March 1, 2021. The corporation incurs startup expenditures of $64,000. If Oleander elects § 195 treatment, determine the total amount o...

Q: Classify each of the following expenditures paid in 2021 as a deduction

Classify each of the following expenditures paid in 2021 as a deduction for AGI, a deduction from AGI, or not deductible: a. Roberto gives cash to his father as a birthday gift. b. Sandra gives cash t...

Q: Isabelle was contemplating making a contribution to her traditional IRA in 2020

Isabelle was contemplating making a contribution to her traditional IRA in 2020. She determined that she would contribute $6,000 in December 2020, but forgot about making the contribution until she wa...

Q: Jamie has an undergraduate degree in finance and has an established financial

Jamie has an undergraduate degree in finance and has an established financial planning practice (a single member LLC). To expand her knowledge base and serve her clients better, she decides to pursue...