Questions from Federal Taxation

Q: Paul suffers from emphysema and severe allergies and, upon the recommendation

Paul suffers from emphysema and severe allergies and, upon the recommendation of his physician, has a dust elimination system installed in his personal residence. In connection with the system, Paul i...

Q: Arthur Wesson, an unmarried individual who is age 58, reports

Arthur Wesson, an unmarried individual who is age 58, reports taxable income of $510,000 in 2021. He records positive AMT adjustments of $80,000 and preferences of $35,000. Arthur itemizes his deducti...

Q: During 2021, Susan incurred and paid the following expenses for Beth

During 2021, Susan incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Surgery for Beth ………………………………………………………………..$4,500 Red River Academy charges for Beth:...

Q: The Federal government incurs a cost for every item that is deductible

The Federal government incurs a cost for every item that is deductible in the computation of taxable income. These costs, which take the form of forgone tax revenue, are often referred to as “tax expe...

Q: Look for reliable data on how many individuals are affected by the

Look for reliable data on how many individuals are affected by the $10,000 SALT cap. Use that data to make an argument for or against the cap.

Q: Since the first bitcoin transaction in 2009, the number of virtual

Since the first bitcoin transaction in 2009, the number of virtual currencies has grown to over 1,500 and some taxpayers trade the currencies multiple times each day (i.e., like a day trader). Find a...

Q: Oil and gas ventures operating as publicly traded partnerships typically attract sophisticated

Oil and gas ventures operating as publicly traded partnerships typically attract sophisticated investors who purchase limited partnership interests. Investments in these types of publicly traded partn...

Q: Investment interest is incurred when taxpayers borrow money that is used to

Investment interest is incurred when taxpayers borrow money that is used to purchase investment property. Using IRS Tax Statistics for the most recent year available (www.irs.gov/statistics), determin...

Q: Robin inherits 1,000 shares of Walmart stock from her aunt

Robin inherits 1,000 shares of Walmart stock from her aunt Julieta in 2021. According to the information received from the executor of Julieta’s estate, Robin’s adjusted basis for the stock is $55,000...

Q: The TCJA of 2017 repealed the corporate AMT provisions. However,

The TCJA of 2017 repealed the corporate AMT provisions. However, any unused AMT credits a corporation had at that point in time were allowed to be used over four tax years, beginning in 2018. The 2020...