Questions from Federal Taxation

Q: Troy, a cash basis taxpayer, is employed by Eagle Corporation

Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from cli...

Q: Faye, Gary, and Heidi each have a one-third

Faye, Gary, and Heidi each have a one-third interest in the FGH Partnership. The following information is available with respect to the partnership for the year and the amount allocable to each partne...

Q: Nell and Kirby are in the process of negotiating their divorce agreement

Nell and Kirby are in the process of negotiating their divorce agreement, to be finalized in 2021. What should be the tax consequences to Nell and Kirby if the following, considered individually, beca...

Q: Ridge is a generous individual. During the year, he made

Ridge is a generous individual. During the year, he made interest-free loans to various family members when the Federal rate was 3%. What are the tax consequences of the following loans by Ridge: a. O...

Q: Vito is the sole shareholder of Vito, Inc. He is

Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2021, Vito borrowed $8,000 from Vito, Inc., and on July 1, 2022, he borrowed an additional $10,000. Both...

Q: As a result of a cancer diagnosis in early 2021, Laura

As a result of a cancer diagnosis in early 2021, Laura has begun chemotherapy treatments. A cancer specialist has stated that Laura has less than one year to live. She has incurred many medical bills...

Q: Compute the 2021 standard deduction for the following taxpayers. a

Compute the 2021 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has $800 in dividend income and $1,400 in wages from a part-time job. b....

Q: Compute the taxable income for 2021 in each of the following independent

Compute the taxable income for 2021 in each of the following independent situations: a. Aaron and Michele, ages 40 and 41, respectively, are married and file a joint return. In addition to four depend...

Q: Compute the taxable income for 2021 for Emily on the basis of

Compute the taxable income for 2021 for Emily on the basis of the following information. Her filing status is single. Salary………………………………………………………………………………$85,000 Interest income from bonds issued by X...

Q: (1) Use an internet search engine (e.g

(1) Use an internet search engine (e.g., Google) to find Internal Revenue Code § 61(a). What is defined in this Code Section? Is the definition broad or narrow? (2) Go to the U.S. Tax Court website (u...