Questions from General Taxation

Q: What are the four sections of a memo to the file?

What are the four sections of a memo to the file? Explain what each section should include.

Q: Gillian and Paul are married and have a son who is a

Gillian and Paul are married and have a son who is a sophomore at the local university. In the current year, they paid $5,000 for tuition and $3,000 for room and board for him. Their adjusted gross in...

Q: Susan is the second-highest-paid executive for Sanibel Corporation

Susan is the second-highest-paid executive for Sanibel Corporation, a publicly traded corporation. Her salary is $1,600,000.

Q: Virginia is the president and founder of VT Corporation. She is

Virginia is the president and founder of VT Corporation. She is extremely devoted to the business, frequently working 70-hour weeks. She did not take any salary from the business for its first two yea...

Q: George just accepted a job as an apartment manager and is paid

George just accepted a job as an apartment manager and is paid a salary of $28,000 per year. In addition to the salary, he is offered the choice of rent-free use of an apartment or a $500 per month ho...

Q: Victor has full-time use of a company-owned Jaguar

Victor has full-time use of a company-owned Jaguar automobile. This year Victor drove 24,000 miles for business and 10,000 personal miles. His employer does not require him to report his personal mile...

Q: In February, Margaret’s employer asked her to move from the Miami

In February, Margaret’s employer asked her to move from the Miami office to the Atlanta office. In March, Margaret spent $900 on a house-hunting trip to Atlanta. She located a home and moved into it i...

Q: Sarah is single and earns $60,000 in salary.

Sarah is single and earns $60,000 in salary. She wants to invest $2,500 per year in an IRA but is not sure which type she qualifies for and whether this would be a better investment than putting her m...

Q: Ken is single and earns a salary of $60,000

Ken is single and earns a salary of $60,000 per year. He also receives $4,000 a year in taxable interest and dividend income. Ken would like to contribute the maximum allowable to his company’s qualif...

Q: Your client, Barry Backache, suffers from a pain in the

Your client, Barry Backache, suffers from a pain in the neck caused by arthritis. He installed a hot tub in his backyard. His doctor advised him that daily periods in the hot tub would relieve his pai...