Questions from Federal Taxation

Q: Jane and Robert Brown are married and have eight children, all

Jane and Robert Brown are married and have eight children, all of whom are considered dependents for Federal income tax purposes. Robert earns $196,000 working as senior manager in a public accounting...

Q: In 2021, Kathleen Tweardy incurs $30,000 of interest

In 2021, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net capital gai...

Q: Farr is single, has no dependents, and does not itemize

Farr is single, has no dependents, and does not itemize her deductions. She reports the following items on her 2021 tax return. Bargain element from the exercise of an ISO (no restrictions apply to th...

Q: Bonnie, who is single and itemizes deductions, reports a zero

Bonnie, who is single and itemizes deductions, reports a zero taxable income for 2021. She incurs positive timing adjustments of $200,000 and AMT exclusion items of $100,000 for the year. What is Bonn...

Q: Adelyn has a tentative general business credit of $42,000

Adelyn has a tentative general business credit of $42,000 for the current year. Adelyn’s net regular tax liability before the general business credit is $107,000, and her tentative minimum tax is $88,...

Q: Oak Corporation has the following general business credit carryovers. 2017

Oak Corporation has the following general business credit carryovers. 2017 ……………………………………..$ 5,000 2018 ………………………………………15,000 2019 ………………………………………..6,000 2020 ………………………………………19,000 Total carryovers ……...

Q: Tom, a calendar year taxpayer, informs you that during the

Tom, a calendar year taxpayer, informs you that during the year, he incurs expenditures of $40,000 that qualify for the incremental research activities credit. In addition, it is determined that his b...

Q: Which of the following individuals qualifies for the earned income credit for

Which of the following individuals qualifies for the earned income credit for 2021? a. Thomas is single, is 21 years of age, and has no qualifying children. His income consists of $9,000 in wages. b....

Q: In a popular press article about the AMT, the author of

In a popular press article about the AMT, the author of the article indicated that he was not going to distinguish between preferences and adjustments because “… irrespective of the label, both items...

Q: Joyce, a single parent, lives in an apartment with her

Joyce, a single parent, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2021. She uses the standard deduction and files as a head of ho...