Questions from General Taxation

Q: Anne operates a dog-training business out of her home.

Anne operates a dog-training business out of her home. She started the business four years ago but has not yet made a profit. She gets all of her business by word-of-mouth and thinks that she might tr...

Q: Last year, after a very bad argument, Holly’s husband moved

Last year, after a very bad argument, Holly’s husband moved out and has not been seen since. Holly’s eight-year-old daughter lives with her.

Q: Liza pays $5,000 for extensive liposuction surgery. Her

Liza pays $5,000 for extensive liposuction surgery. Her medical insurance does not cover this expense.

Q: Barry has a chronic back problem that requires that he receive regular

Barry has a chronic back problem that requires that he receive regular therapy in a swimming pool. He purchased a new home with a larger backyard so that he could install a swimming pool. The purchase...

Q: Megan and Sam have a 10-year-old daughter,

Megan and Sam have a 10-year-old daughter, who is autistic. Megan and Sam pay $16,000 annual tuition for their daughter to attend a special school for autistic children.

Q: In March, Helen purchased a new home for $140,

In March, Helen purchased a new home for $140,000. She paid $28,000 cash down and financed the balance with a mortgage for which she also paid $1,800 in closing costs and $1,100 in points. Her interes...

Q: Carla is single and provides more than 50 percent of the support

Carla is single and provides more than 50 percent of the support for her mother who lives in a nursing home. Her mother received $2,000 interest on her State of Florida bonds, $3,000 in dividend incom...

Q: Jose is single and a U.S. citizen living in

Jose is single and a U.S. citizen living in Texas. Jose provides all of the support for his parents who are citizens and residents of Argentina. Jose’s parents are considering moving to and becoming r...

Q: Jessica invites a 16-year-old foreign exchange student to

Jessica invites a 16-year-old foreign exchange student to live in her home for the academic school year. Jessica provides all of the student’s support for that period of time. The student is not relat...

Q: Sabrina pays most of the cost for her Aunt Betty to live

Sabrina pays most of the cost for her Aunt Betty to live in a nursing home. Betty receives Social Security benefits of $8,200 a year (all paid to the nursing home). Betty has no other income so Sabrin...