Questions from Federal Taxation

Q: Randall owns an office building (adjusted basis of $250,

Randall owns an office building (adjusted basis of $250,000) that he has been renting to a group of physicians. During negotiations over a new seven-year lease, the physicians offer to purchase the bu...

Q: Yanling owns a 150-unit motel that was constructed in the

Yanling owns a 150-unit motel that was constructed in the late 1960s. It is located on 10 acres on the main highway leading into the city. Yanling renovated the motel three years ago. Yanling’s motel...

Q: Wally, Inc., sold the following three personal property assets in

Wally, Inc., sold the following three personal property assets in year 6: What is Wally’s net § 1231 gain or loss in year 6? a. $500 loss b. $300 gain c. $800 gain d. $1,...

Q: Wally, Inc., sold the following three personal property assets in

Wally, Inc., sold the following three personal property assets in year 6: / What is Wally’s § 1245 recapture in year 6? a. $500 loss b. $300 gain c. $800 gain d. $1,600 gain

Q: Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bil...

Q: Purple Corporation purchases residential rental property for $1,000,

Purple Corporation purchases residential rental property for $1,000,000 (disregarding any allocation to the land) on March 9, 2018. Straight-line cost recovery of $130,295 is taken before the property...

Q: Anthony Barrone is a graduate student at State University. His 10

Anthony Barrone is a graduate student at State University. His 10-year-old son, Jamie, lives with him, and Anthony is Jamie’s sole support. Anthony’s wife died in 2...

Q: Justin Stone was an employee of DataCare Services, Inc. His

Justin Stone was an employee of DataCare Services, Inc. His salary was $45,000 through November 10, 2020, when he was laid off. DataCare Services provided medical insurance for Justin and his family d...

Q: Glen and Diane Okumura (both age 48) are married,

Glen and Diane Okumura (both age 48) are married, file a joint return, and live at 39 Kaloa Street, Honolulu, HI 96815. Glen’s Social Security number is 111-11-1111, and Diane’s is 123-45-6789. The Ok...

Q: Devon Bishop, age 45, is single. He lives at

Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the year...