Questions from Federal Taxation

Q: Review Examples 4 and 6 in the text. In both examples

Review Examples 4 and 6 in the text. In both examples, the taxpayer’s AGI is $129,400 even though in Example 6 there is $700 of nonrecaptured § 1231 loss from 2020. Explain why the two AGI amounts are...

Q: During his senior year in college, Sandy is drafted by the

During his senior year in college, Sandy is drafted by the Los Angeles Dodgers. When he graduates, he expects to sign a five-year contract in the range of $1,700,000 per year. Identify some tax benefi...

Q: Joey, who is single, is not covered by another qualified

Joey, who is single, is not covered by another qualified plan and earns $127,000 at his job in 2021. How much can he contribute to a traditional IRA or to a Roth IRA in 2021?

Q: If depreciable equipment used in a business is sold at a recognized

If depreciable equipment used in a business is sold at a recognized gain on July 10, 2021, and it was purchased on August 21, 2020, does $1245 depreciation recapture apply to the asset? Explain.

Q: Reba, a calendar year taxpayer, owns an office building that

Reba, a calendar year taxpayer, owns an office building that she uses in her business. The building is involuntarily converted on November 15, 2021. On January 5, 2022, Reba receives enough proceeds t...

Q: Determine the percentage of vesting for the following employees. See Exhibits

Determine the percentage of vesting for the following employees. See Exhibits 19.1 and 19.2. a. Jun has five years of service completed as of September 23, 2021, her employment anniversary date. If he...

Q: Osprey Corporation, an accrual basis taxpayer, reported taxable income for

Osprey Corporation, an accrual basis taxpayer, reported taxable income for 2021 and paid $40,000 on its estimated state income tax for the year. During 2021, the company received a $4,000 refund upon...

Q: Joanna, age 44, defers $24,000 in a

Joanna, age 44, defers $24,000 in a qualified Solo § 401(k) plan in 2021. a. What amount must be returned to Joanna and by what date? b. In what year will the amount be taxed? c. What percent of the t...

Q: Zack, a sole proprietor, has earned income of $85

Zack, a sole proprietor, has earned income of $85,000 in 2021 (after the deduction for one-half of self-employment tax). What is the maximum contribution Zack may make to a defined contribution Keogh...

Q: In June 2021, Sue exchanges a sport-utility vehicle (

In June 2021, Sue exchanges a sport-utility vehicle (adjusted basis of $16,000; fair market value of $19,500) for cash of $2,000 and a pickup truck (fair market value of $17,500). Both vehicles are he...