Questions from General Taxation

Q: Jessica owns investment land currently worth $5,000,000

Jessica owns investment land currently worth $5,000,000. She paid $3,000,000 for the land 10 years ago. She expects that the land will probably increase in value to at least $8,000,000 before she dies...

Q: Cherry’s widowed mother, Nancy, had to quit working for health

Cherry’s widowed mother, Nancy, had to quit working for health reasons and now her only income is $1,100 per month from Social Security. Cherry recently became partner of a law firm and has moved into...

Q: What are IDCs and how are they treated for tax purposes?

What are IDCs and how are they treated for tax purposes?

Q: Steven had a taxable estate of $8,850,000

Steven had a taxable estate of $8,850,000 when he died in 2017. If he had no prior taxable gifts, what is his net estate tax liability?

Q: Sondra and Jason, a wealthy married couple, won $96

Sondra and Jason, a wealthy married couple, won $96 million in a 2017 Powerball drawing. They decided to share some of this new wealth immediately with some of their friends and family. They paid $1,8...

Q: Wilma had a loss of $25,000 on some bearer

Wilma had a loss of $25,000 on some bearer bonds that were stolen and never recovered. She suffered a $20,000 loss when a piece of land she had held as an investment was condemned to make way for a ne...

Q: Gisela gave Ellen stock worth $50,000 this year.

Gisela gave Ellen stock worth $50,000 this year. Gisela purchased the stock for $60,000 four years ago. Calculate Ellen’s basis for the stock if she sells it a. for $65,000. b. for $45,000. c. for...

Q: Blanco Corporation (a calendar-year taxpayer) purchased $2

Blanco Corporation (a calendar-year taxpayer) purchased $2,200,000 of used manufacturing equipment in July, $400,000 of used computer equipment in August, and an office building for $850,000 (of which...

Q: Shawn exchanges a factory building for an apartment building in a qualifying

Shawn exchanges a factory building for an apartment building in a qualifying like-kind exchange. The factory has a basis of $350,000 and the apartment building has a fair market value of $320,000. a....

Q: On April 1, Radcliff Corporation, a calendar year taxpayer,

On April 1, Radcliff Corporation, a calendar year taxpayer, purchased land, a warehouse, and used equipment (7-year property) for a total price of $500,000. An appraiser determined that the land has a...