Questions from General Taxation

Q: Alfred has investments in three passive activities: In year 1,

Alfred has investments in three passive activities: In year 1, PA-1 had a gain of $3,000, PA-2 had a loss of $10,000, and PA-3 had a loss of $5,000. In year 2, PA-1 has a gain of $12,000, PA-2 has a $...

Q: Explain the difference between cost depletion and percentage depletion.

Explain the difference between cost depletion and percentage depletion.

Q: On March 15, 2015, James Smith formed a business to

On March 15, 2015, James Smith formed a business to rent and service vending machines providing healthy snack alternatives and juices to the local middle and high schools. He operates the business as...

Q: Which of the following are completed gifts? How much is the

Which of the following are completed gifts? How much is the value of each gift before any exclusions? a. Hughlene sold stock worth $90,000 to her son for $30,000. b. Ken deposits $15,000 into a savi...

Q: Determine the taxable gift for each of the following. a

Determine the taxable gift for each of the following. a. In February, Cynthia transferred $200,000 into a revocable trust. In October, the trustee distributes $18,000 of income to the beneficiary, Ei...

Q: Which of the following are completed gifts? Determine the value of

Which of the following are completed gifts? Determine the value of each gift before any exclusions? a. In March, Stephanie deposits $30,000 cash into a joint checking account for herself and her boyf...

Q: In the current year, Marah gives $20,000 cash

In the current year, Marah gives $20,000 cash to Sam, $60,000 of stock to Craig, and $100,000 of bonds to Lynn. In the same year, Marah’s husband, Bryan, gives land valued at $120,000 to Jerry. a. Wh...

Q: On January 15 of the current year, Eileen, age 24

On January 15 of the current year, Eileen, age 24, receives stock worth $28,000 as a gift from her parents. Her parents jointly purchased the stock six years ago for $12,000. During the year, Eileen r...

Q: Lenny, age 12, has $3,500 interest income

Lenny, age 12, has $3,500 interest income from a trust established by his uncle. This is Lenny’s only source of income for the year. Lenny’s parents are in the 33 percent marginal tax bracket. a. Wha...

Q: Cindy, an 18-year-old full-time student

Cindy, an 18-year-old full-time student, has $3,400 interest income from a trust established by her grandparents. Cindy also earned $6,000 working at a part-time job. She lives at home with her parent...