Questions from Federal Taxation


Q: In 2021, Geoff incurred $900,000 of mine and

In 2021, Geoff incurred $900,000 of mine and exploration expenditures. He elects to deduct the expenditures as quickly as the tax law allows for regular tax purposes. a. How will Geoff’s treatment of...

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Q: Liz had AGI of $130,000 in 2021. She

Liz had AGI of $130,000 in 2021. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2021. a. What is the amount of Liz’s deduction assumin...

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Q: Ramon had AGI of $180,000 in 2022. He

Ramon had AGI of $180,000 in 2022. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable...

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Q: On December 27, 2021, Roberta purchased four tickets to a

On December 27, 2021, Roberta purchased four tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost $200 and had a fair market value...

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Q: Heather wants to invest $40,000 in a relatively safe

Heather wants to invest $40,000 in a relatively safe venture and has discovered two alternatives that would produce the following reportable ordinary income and loss over the next three years: She is...

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Q: Bart and Elizabeth Forrest are married and have no dependents. They

Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2021. Bart incurred some significant medical expense...

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Q: Evan is single and has AGI of $277,300 in

Evan is single and has AGI of $277,300 in 2021. His potential itemized deductions before any limitations for the year total $52,300 and consist of the following: Medical expenses (before the 7.5%-of-A...

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Q: Paola exercised an incentive stock option on March 1, 2021.

Paola exercised an incentive stock option on March 1, 2021. She acquired 2,000 shares of stock at an exercise price of $3 per share when the fair market value of the stock was $15 per share. However,...

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Q: Linda, who files as a single taxpayer, had AGI of

Linda, who files as a single taxpayer, had AGI of $280,000 for 2021. She incurred the following expenses and losses during the year: Medical expenses (before the 7.5%-of-AGI limitation) ……………………………….....

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Q: Emma Doyle is employed as a corporate attorney. For calendar year

Emma Doyle is employed as a corporate attorney. For calendar year 2021, she had AGI of $75,000 and paid the following medical expenses: Medical insurance premiums ……………………………………………………………….$3,700 Docto...

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