Q: Your client is a new retailer who often issues store gift (
Your client is a new retailer who often issues store gift (debit) cards to customers in lieu of a cash refund. You recall that a special rule allows accrual method taxpayers to defer all or a portion...
See AnswerQ: Your client, Simon Che, is an avid Texas Rangers fan
Your client, Simon Che, is an avid Texas Rangers fan. Last March at the Rangers’ home opener, as a result of a random drawing of those in attendance at the game, Simon won 300 Shipley Do-Nut coupons....
See AnswerQ: Gray Chemical Company manufactured pesticides that were toxic. Over the course
Gray Chemical Company manufactured pesticides that were toxic. Over the course of several years, the toxic waste contaminated the air and water around the company’s plant. Several employees suffered t...
See AnswerQ: Rex and Agnes Harrell purchased a beach house at Duck, North
Rex and Agnes Harrell purchased a beach house at Duck, North Carolina, in early 2021. Although they intended to use the beach house occasionally for recreational purposes, to help pay the mortgage pay...
See AnswerQ: During 2021, your client, Kendra Adams, was the chief
During 2021, your client, Kendra Adams, was the chief executive officer and a shareholder of Maze, Inc. She owned 60% of the outstanding stock of Maze. In 2018, Kendra and Maze, as co-borrowers, obtai...
See AnswerQ: Esther owns a large home on the Southeast Coast. Her home
Esther owns a large home on the Southeast Coast. Her home is surrounded by large, mature oak trees that significantly increase the value of her home. In September 2021, a hurricane damaged many of the...
See AnswerQ: Your client, Dave’s Sport Shop, sells sports equipment and clothing
Your client, Dave’s Sport Shop, sells sports equipment and clothing in three retail outlets in New York City. During 2021, the CFO decided that keeping track of inventory using a combination of QuickB...
See AnswerQ: Paul and Sonja, who are married, had itemized deductions of
Paul and Sonja, who are married, had itemized deductions of $13,200 and $400, respectively, during 2021. Paul suggests that they file separately—he will itemize his deductions from AGI, and she will c...
See AnswerQ: In 2017, Jed James began planting a vineyard. The costs
In 2017, Jed James began planting a vineyard. The costs of the land preparation, labor, rootstock, and planting were capitalized. The land preparation costs do not include any nondepreciable land cost...
See AnswerQ: Juan owns a business that acquires exotic automobiles that are high-
Juan owns a business that acquires exotic automobiles that are high-tech, state-of-the-art vehicles with unique design features or equipment. The exotic automobiles are not licensed or set up to be us...
See Answer
