Questions from Federal Taxation

Q: In 2021, the CEO of Crimson, Inc., entertains seven

In 2021, the CEO of Crimson, Inc., entertains seven clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times duri...

Q: In 2020, Henry Jones (Social Security number 123-45

In 2020, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income....

Q: Connor purchased an annuity that was to pay him a fixed amount

Connor purchased an annuity that was to pay him a fixed amount each month for the remainder of his life. He began receiving payments in 2004, when he was 65 years old. In 2021, Connor was killed in an...

Q: Nanette, a single taxpayer, is a first-grade teacher

Nanette, a single taxpayer, is a first-grade teacher. Potential deductions are charitable contributions of $800, personal property taxes on her car of $240, and various supplies purchased for use in h...

Q: In January 2021, Sonja deposited $20,000 in a

In January 2021, Sonja deposited $20,000 in a bank in the Bahamas. She earned $500 interest income. She closed the account in December 2021. a. Is Sonja subject to the FBAR reporting requirement? Expl...

Q: Dolly is a cash basis taxpayer. In 2021, she filed

Dolly is a cash basis taxpayer. In 2021, she filed her 2020 South Carolina income tax return and received a $2,200 refund. Dolly took the standard deduction on her 2020 Federal income tax return but w...

Q: In 2021, Kelsey sustained a loss on the theft of a

In 2021, Kelsey sustained a loss on the theft of a painting. She had paid $20,000 for the painting, but it was worth $40,000 at the time of the theft. Evaluate the tax consequences of treating the pai...

Q: In 2018, John opened an investment account with Randy Hansen,

In 2018, John opened an investment account with Randy Hansen, who held himself out to the public as an investment adviser and securities broker. John contributed $200,000 to the account in 2018. John...

Q: Amos began a business, Silver LLC (a single-member

Amos began a business, Silver LLC (a single-member LLC), on July 1, 2018. The business extracts and processes silver ore. During 2021, as a result of a decline in demand for silver ore, Amos expects t...

Q: In May 2021, Gwen began searching for a trade or business

In May 2021, Gwen began searching for a trade or business to acquire. In anticipation of finding a suitable acquisition, Gwen hired an investment banker to evaluate three potential businesses. She als...