Questions from Federal Taxation

Q: Consuela was a tenant in a campus apartment. She is a

Consuela was a tenant in a campus apartment. She is a student at State University. Her lease began on August 1, 2021, and was due to expire on July 31, 2022. However, her landlord sold the building, a...

Q: Quentin’s roadside vegetable stand (adjusted basis of $275,000

Quentin’s roadside vegetable stand (adjusted basis of $275,000) is destroyed by a tractor-trailer accident. He receives insurance proceeds of $240,000. Quentin immediately uses the proceeds plus addit...

Q: Harvey is a self-employed accountant with earned income from the

Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his self-employment tax). He uses a defined contribution Keogh plan. What is...

Q: Carla was the owner of vacant land that she was holding for

Carla was the owner of vacant land that she was holding for investment. She paid $2,000,000 for the land in 2018. Raymond was an investor in vacant land. He thought Carla’s land might be the site of a...

Q: Jimmy establishes a Roth IRA at age 47 and contributes $89

Jimmy establishes a Roth IRA at age 47 and contributes $89,600 over 18 years. The account is now worth $112,000. How much of these funds may Jimmy withdraw tax-free?

Q: Jacob Patterson is limited from making a fully deductible $6,

Jacob Patterson is limited from making a fully deductible $6,000 IRA contribution because of his income level. Instead, he makes a $3,500 nondeductible IRA contribution to his traditional IRA. Find ou...

Q: Louis is a participant in the SIMPLE IRA of his employer Brown

Louis is a participant in the SIMPLE IRA of his employer Brown, Inc. During 2021, he contributes 8% of his salary of $63,000, and his employer contributes 3%. What is the total amount that will be ves...

Q: Gabriella, age 34, and Beth, age 32, have

Gabriella, age 34, and Beth, age 32, have been married for nine years. Gabriella, who is a college student, works part-time and earns $1,500. Beth is a high school teacher and earns a salary of $34,00...

Q: Locate the most recent data available from the IRS on Form 8824

Locate the most recent data available from the IRS on Form 8824 filings (irs.gov/statistics). In a Microsoft Excel spreadsheet, use this information to provide a summary of these transactions through...

Q: In December 2021, Nell, Inc., an accrual basis taxpayer

In December 2021, Nell, Inc., an accrual basis taxpayer, paid $12,000 for insurance premiums for the 2022 calendar year. How much of the premiums can Nell, Inc., deduct in 2021?