Questions from Federal Taxation

Q: Asok’s AGI for 2021 is $133,250. Included in

Asok’s AGI for 2021 is $133,250. Included in this AGI is a $45,000 25% longterm capital gain and a $13,000 0%/15%/20% long-term capital gain. Asok is single and uses the standard deduction. Compute hi...

Q: Jenny purchased timber on a 100-acre tract of land in

Jenny purchased timber on a 100-acre tract of land in South Dakota in March 2019 for $100,000. On January 1, 2021, the timber had a fair market value of $145,000. Because of careless cutting in Novemb...

Q: Keshara has the following net § 1231 results for each of the

Keshara has the following net § 1231 results for each of the years shown. What would be the nature of the net gains in 2020 and 2021?

Q: Vijay owns land (adjusted basis of $40,000)

Vijay owns land (adjusted basis of $40,000) that he uses in his business. He exchanges the land and $20,000 in cash for a different parcel of land worth $50,000. May Vijay avoid like-kind exchange tre...

Q: Siena Industries (a sole proprietorship) sold three § 1231 assets

Siena Industries (a sole proprietorship) sold three § 1231 assets during 2021. Data on these property dispositions are as follows: a. Determine the amount and the character of the recogniz...

Q: Amber Industries (a sole proprietorship) sold three $ 1231 assets

Amber Industries (a sole proprietorship) sold three $ 1231 assets during 2021. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or l...

Q: Copper Industries (a sole proprietorship) sold three § 1231 assets

Copper Industries (a sole proprietorship) sold three § 1231 assets during 2021. Data on these property dispositions are as follows: a. Determine the amount and the character of the recogni...

Q: On December 1, 2019, Lavender Manufacturing Company (a corporation

On December 1, 2019, Lavender Manufacturing Company (a corporation) purchased another company’s assets, including a patent. The patent was used in Lavender’s manufacturing operations; $49,500 was allo...

Q: On June 1, 2017, Skylark Enterprises (a calendar year

On June 1, 2017, Skylark Enterprises (a calendar year LLC reporting as a sole prorietorship) acquired a retail store building for $500,000 (with $100,000 being allocated to the land). The store buildi...

Q: On May 2, 1991, Hannah Weather (Social Security number

On May 2, 1991, Hannah Weather (Social Security number: 111-22-3333) acquired residential rental real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building....