Questions from Federal Taxation

Q: Susie, John, Luke, and Will provide support for their

Susie, John, Luke, and Will provide support for their 80-year-old mother, Joyce. Joyce lives by herself in an apartment in Miami, Florida. Joyce earned $5,000 this year working at her church. Joyce pr...

Q: Heather is single and has one son, Rhett, who is

Heather is single and has one son, Rhett, who is 19 years old. Rhett lived at home for four months of the current tax year before moving away to take a full-time job in another city. Heather provided...

Q: Jonathan Jones is a 19-year-old full-time

Jonathan Jones is a 19-year-old full-time college student at the local community college. He lives in an apartment near campus during the school year and returns home for the summer break and holidays...

Q: In 2020, Madison and Nick Koz have two children, ages

In 2020, Madison and Nick Koz have two children, ages 8 and 10. Both children meet the definition of qualifying child. The Koz family has adjusted gross income of $300,000. What is the amount of the c...

Q: The Tiller family has an adjusted gross income of $200,

The Tiller family has an adjusted gross income of $200,000 in 2020. The Tillers have two children, ages 12 and 13, who qualify as dependents. All of the Tillers’ income is from wages...

Q: Which of the following is taxable as gross income? a

Which of the following is taxable as gross income? a. Child support received based on a divorce agreement executed in 2015. b. Alimony received based on a divorce agreement executed in 2015. c. Child...

Q: Bob is a farmer and is required to use the accrual method

Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased li...

Q: The Griffins own a mountain cabin that is used for both personal

The Griffins own a mountain cabin that is used for both personal and rental purposes. In the current year, the Griffins rented the cabin out for 150 days and used it personally for 50 days. Assume tha...

Q: The Groves own a beach house as a second home. This

The Groves own a beach house as a second home. This year, the Groves used the beach house personally for 4 months. For 14 days during the summer, the Groves rented out their beach house for $5,000 tot...

Q: In 2021, Jack, age 12, has interest income of

In 2021, Jack, age 12, has interest income of $4,900 on funds he inherited from his aunt and no earned income. He has no investment expenses. Christian and Danielle (his parents) have taxable income o...