Questions from Federal Taxation

Q: Madison and Nick Koz have two children, ages 8 and 10

Madison and Nick Koz have two children, ages 8 and 10. Both children meet the definition of qualifying child. The Koz family has adjusted gross income of $300,000. What is the amount of the child tax...

Q: On February 1 of the current year, Duffy learned that he

On February 1 of the current year, Duffy learned that he was bequeathed 1,000 shares of common stock under his father’s will. Duffy’s father had paid $12,500 for the stock 20 years ago. Fair market va...

Q: On January 25, year 10, Mother Hall gave her daughter

On January 25, year 10, Mother Hall gave her daughter, Nadyne, 500 shares of common stock of XYZ, Corp. The fair market value of the stock on January 25 was $2,000. Mother Hall had paid $4,000 for the...

Q: In early year 8, Alice sold Tom, her son,

In early year 8, Alice sold Tom, her son, 20 shares of common stock for $20,000. Alice had paid $25,000 for the stock in year 2. In late year 8, Tom sold the stock to an unrelated third party for $35,...

Q: Sally recently invested $10,000 (tax basis) in

Sally recently invested $10,000 (tax basis) in a limited partnership interest. Her atrisk amount is also $10,000. The partnership lost $6,000 this year, and Sally’s share of the loss is $2,000. Sally...

Q: Which of the following may not be claimed as a deduction by

Which of the following may not be claimed as a deduction by a taxpayer who claims the standard deduction? a. Interest penalty on early withdrawal of savings b. Self-employed health insurance c. State...

Q: Betty is age 34 and has AGI of $50,000

Betty is age 34 and has AGI of $50,000. The following items may qualify as itemized deductions for Betty: Qualified medical expenses (before 7.5% AGI floor) ………………………….$6,000 Real estate tax ………………………...

Q: Betty is age 34 and has AGI of $50,000

Betty is age 34 and has AGI of $50,000 and regular taxable income of $35,000. The following items may qualify as itemized deductions for Betty: Qualified medical expenses (before percentage of AGI flo...

Q: Tim and Sarah Lawrence are married and file a joint return.

Tim and Sarah Lawrence are married and file a joint return. Tim’s Social Security number is 123-45-6789, and Sarah’s Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA...

Q: Robert A. Kliesh, age 41, is single and has

Robert A. Kliesh, age 41, is single and has no dependents. Robert’s Social Security number is 111-11-1115. His address is 727 Big Horn Avenue, Sheridan, WY 82801. He does not contribute to the Preside...