Questions from General Taxation

Q: Virginia gave her 14-year-old grandson, Tommy,

Virginia gave her 14-year-old grandson, Tommy, $10,000 in common stock. One month later, Tommy receives a $100 dividend on the stock. How much income is taxed to Tommy and how much to Virginia?

Q: Why is interest income on state and local bonds tax exempt?

Why is interest income on state and local bonds tax exempt?

Q: At the beginning of the current year, Martha, a cash

At the beginning of the current year, Martha, a cash-basis taxpayer, purchased a $10,000 three-year bond from Lauderhill Corporation at its issue price of $7,000. At the end of the year, $840 of inter...

Q: While walking through the park, Jane finds a $100 bill

While walking through the park, Jane finds a $100 bill. No one is around to claim it, so she keeps it. Does Jane have any gross income as a result of this?

Q: What is the purpose of the United States establishing a tax treaty

What is the purpose of the United States establishing a tax treaty with a foreign country?

Q: What is the difference between a legislative regulation and an interpretative regulation

What is the difference between a legislative regulation and an interpretative regulation?

Q: What are two major categories of differences between financial accounting income and

What are two major categories of differences between financial accounting income and taxable income?

Q: Michelle (a calendar-year individual) begins a new business

Michelle (a calendar-year individual) begins a new business as a sole proprietorship. She would like to use an October 31 fiscal year-end for her business because the calendar year ends during her bus...

Q: Jabba Company uses the cash method of accounting. Jabba received a

Jabba Company uses the cash method of accounting. Jabba received a computer from a customer as payment for a $2,000 bill. Can Jabba avoid recognizing income because it received payment in a noncash fo...

Q: Murphy Company, a cash-basis, calendar-year taxpayer

Murphy Company, a cash-basis, calendar-year taxpayer, received a call on December 28, year 1, from a client stating that a check for $9,000 as payment in full for their services can be picked up at...