Questions from General Taxation

Q: Your clients, Sonny and his wife, Honey, believe in

Your clients, Sonny and his wife, Honey, believe in worshiping Ta-Ra, the Sun God. To practice their religious beliefs, they take a weeklong trip to Hawaii to worship Ta-Ra. The cost of this pilgrimag...

Q: Fred Fisher is a licensed scuba diver who lives in Key Largo

Fred Fisher is a licensed scuba diver who lives in Key Largo. He is employed full-time as an engineer. Five years ago he had been employed as a professional diver for a salvage company. While working...

Q: Locate and read Greg McIntosh, TC Memo 2001-144,

Locate and read Greg McIntosh, TC Memo 2001-144, 81 TCM 1772, RIA TC Memo 2001144 (6/19/2001). Answer the following questions. a. What requirements must be met for a taxpayer to recover litigation co...

Q: Locate and read the following two cases: J.B.

Locate and read the following two cases: J.B.S. Enterprises, Inc., TC Memo 1991-254, 61 TCM 2829, 1991 PH TC Memo 91,254 Summit Publishing Company, Inc., TC Memo 1990-288, 59 TCM 833, 1990 PH TC Memo...

Q: For each of the following independent situations, identify whether the item

For each of the following independent situations, identify whether the item would be primarily a tax or a nontax factor in tax planning. a. The taxpayer lost a quarter of her net worth when the dot-c...

Q: Alice and Manny agree to divorce. Alice proposes that Manny purchase

Alice and Manny agree to divorce. Alice proposes that Manny purchase and assign to her a life insurance policy on his life as part of the divorce agreement. She wants Manny to continue paying the prem...

Q: A minister receives an annual salary of $16,000 in

A minister receives an annual salary of $16,000 in addition to the use of a church parsonage that has an annual rental value of $6,000. The minister accepted this minimal salary because he felt that w...

Q: Marino Corporation pays $6,500 to rent a 10-

Marino Corporation pays $6,500 to rent a 10-seat skybox for three football games to use for business entertainment at each game. The price for a regular nonluxury box seat at each game is $45. How muc...

Q: Suzanne owns a vacation home at the beach in which she lived

Suzanne owns a vacation home at the beach in which she lived for 30 days and rented out for 61 days during the current year. Her gross rental income is $2,600. Her total expenses for the vacation home...

Q: Don has a very painful terminal disease and has learned that marijuana

Don has a very painful terminal disease and has learned that marijuana may mitigate his pain. Don lives in a state in which it is legal to use the drug if under the direction of a medical doctor. Can...