Questions from General Taxation

Q: Luis, a self-employed individual, flies from New York

Luis, a self-employed individual, flies from New York to Rome. He spends seven days in Rome on business and stays in Rome for an additional three days to vacation. Transportation costs incurred were $...

Q: In the current year, Melbourne Corporation pays the $2,

In the current year, Melbourne Corporation pays the $2,000 annual premium for a life insurance policy on its president, for which Melbourne Corporation is the beneficiary. Melbourne also pays $20,000...

Q: Denise files her 2017 tax return on February 4, 2018.

Denise files her 2017 tax return on February 4, 2018. If there is no material understatement of income on her return and the return is properly signed and filed, when does the statute of limitations e...

Q: Makai Corporation has a potential deduction of up to $1,

Makai Corporation has a potential deduction of up to $1,000 that it would like to claim on its current-year tax return. Its tax position meets the recognition threshold of more likely than not, but th...

Q: Tropical Patios Corporation manufactures patio furniture in a factory with 24 employees

Tropical Patios Corporation manufactures patio furniture in a factory with 24 employees. The office staff consists of 4 employees who handle personnel, accounting, and other office responsibilities. T...

Q: Sherry just received a big promotion at Barcardo Corporation. Last year

Sherry just received a big promotion at Barcardo Corporation. Last year her salary was $100,000, but due to her promotion she expects to earn $180,000 this year. She expects that she will be able to s...

Q: Jason owns a computer repair shop. Jason needs some repair work

Jason owns a computer repair shop. Jason needs some repair work done on his company car, so he agrees to repair the computer at Bob’s Auto Repairs in exchange for fixing the car.

Q: A landlord requires tenants to pay 3 months’ rent in advance at

A landlord requires tenants to pay 3 months’ rent in advance at the beginning of a lease. He informs the tenants that this is for the first month’s rent, the last month’s rent, and a refundable securi...

Q: What is the difference between proposed and temporary regulations? What weight

What is the difference between proposed and temporary regulations? What weight do they carry?

Q: In December, year 1, Sid’s Body Shop (an accrual

In December, year 1, Sid’s Body Shop (an accrual-basis taxpayer) repaired Lisa’s car and was to be paid $2,000 by her insurance company. Lisa was not satisfied with the repair job but finally agreed t...