Questions from Federal Taxation

Q: Determine the amount of the standard deduction allowed for 2021 in the

Determine the amount of the standard deduction allowed for 2021 in the following independent situations. In each case, assume that the taxpayer is claimed as another person’s dependent. a. Curtis, age...

Q: Al is a medical doctor who conducts his practice as a sole

Al is a medical doctor who conducts his practice as a sole proprietor. During 2021, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 202...

Q: For tax year 2021, determine the number of dependents in each

For tax year 2021, determine the number of dependents in each of the following independent situations: a. Ben and Molly (ages 48 and 46, respectively) are married and furnish more than 50% of the supp...

Q: In November 2021, Kortney (who is a self-employed

In November 2021, Kortney (who is a self-employed management consultant) travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time she s...

Q: Determine the gross income of the beneficiaries in the following cases:

Determine the gross income of the beneficiaries in the following cases: a. Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily...

Q: Trip Garage, Inc. (459 Ellis Avenue, Harrisburg,

Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2021, the company repaired Samuel Mosley’s car and charged him $1,00...

Q: During 2021, Jenny, age 14, lives in a household

During 2021, Jenny, age 14, lives in a household with her father, uncle, and grandmother. The household is maintained by the uncle. The parties, all of whom file separate returns, have AGI as follows:...

Q: Wesley and Camilla (ages 90 and 88, respectively) live

Wesley and Camilla (ages 90 and 88, respectively) live in an assisted care facility and for 2020 and 2021 received their support from the following sources: Percentage of Support Social Secur...

Q: Taylor, age 18, is claimed as a dependent by her

Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income: $6,000 wages from a summer job, $800 interest from a money market account, and $300 interest from City...

Q: Walter and Nancy provide 60% of the support of their daughter

Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student at a local university, and the daughter (Stella) holds vari...