Questions from Federal Taxation

Q: Tim recently was called into the partner’s office and offered a two

Tim recently was called into the partner’s office and offered a two-year assignment in his public accounting firm’s Shanghai office. Realizing that Tim will face incremental expenses while in Shanghai...

Q: Roberto has received various gifts over the years and has decided to

Roberto has received various gifts over the years and has decided to dispose of several of these assets. What is the recognized gain or loss from each of the following transactions, assuming that no F...

Q: On September 18, 2021, Gerald received land and a building

On September 18, 2021, Gerald received land and a building from Lei as a gift. No gift tax was paid on the transfer. Lei’s records show the following. a. Determine Geraldâ€...

Q: Tyler Meade is planning to make a charitable contribution to the Girl

Tyler Meade is planning to make a charitable contribution to the Girl Scouts. He will contribute Crystal, Inc. stock worth $20,000. The stock has an adjusted basis of $15,000. A friend has suggested t...

Q: Dan bought a hotel for $2,600,000 in

Dan bought a hotel for $2,600,000 in January 2017. In May 2021, he died and left the hotel to Ed. While Dan owned the hotel, he deducted $289,000 of cost recovery. The fair market value in May 2021 wa...

Q: Ella and Emma are twin sisters who live in Louisiana and Mississippi

Ella and Emma are twin sisters who live in Louisiana and Mississippi, respectively. Ella is married to Frank, and Emma is married to Richard. Frank and Richard are killed in an auto accident in 2021 w...

Q: Thania inherited 1,000 shares of Aqua, Inc. stock

Thania inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe’s basis in the stock was $35,000, and the fair market value of the stock on July 1, 2021 (the date of Joe’s death) was $45,000. The shar...

Q: On December 28, 2021, Kramer sells 150 shares of Lavender

On December 28, 2021, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2022, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer’s adjusted basis...

Q: Ichiro, age 93, has accumulated substantial assets during his life

Ichiro, age 93, has accumulated substantial assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson. Ichiro has been in ill health for the...

Q: Calculate the exemption amount for the following cases in 2021 for a

Calculate the exemption amount for the following cases in 2021 for a married taxpayer filing jointly and for a married taxpayer filing separately. In addition, use Microsoft Excel to express your solu...