Questions from General Taxation

Q: What is the potential advantage to having a substantial investment in stock

What is the potential advantage to having a substantial investment in stock in a qualified small business corporation rather than an equal investment in other corporate stock not meeting their provisi...

Q: Herald Corporation, a calendar-year taxpayer, purchased and placed

Herald Corporation, a calendar-year taxpayer, purchased and placed the following business assets in service during 2017: Herald Corporation plans to purchase $460,000 of new office furniture. It coul...

Q: Bing Corporation can buy a new car for business use for $

Bing Corporation can buy a new car for business use for $40,000 (including tax, license, and title fees) or it can lease an identical car for $450 per month, paying $2,100 up front for tax, license, a...

Q: Wilma had a number of stock transactions during the year that resulted

Wilma had a number of stock transactions during the year that resulted in an $18,000 capital loss. She has one stock remaining in her portfolio and would realize a $16,000 capital gain if she sold it...

Q: Monique is planning to increase the size of the manufacturing business that

Monique is planning to increase the size of the manufacturing business that she operates as a sole proprietorship. She has a number of older assets that she plans to replace as part of the expansion....

Q: Joy purchased a home in Maine on December 15, 1999 for

Joy purchased a home in Maine on December 15, 1999 for $250,000 and lived in it full-time until she purchased a second home in Florida on October 1, 2012 for $380,000. In 2012 and 2013 she continued t...

Q: Betty is a real estate dealer and has numerous properties for sale

Betty is a real estate dealer and has numerous properties for sale, many of which she owns. Her son is finishing his education and plans to go into the consulting business. Betty has committed at leas...

Q: Natalie expects her ordinary income to exceed the 39.6 percent

Natalie expects her ordinary income to exceed the 39.6 percent tax bracket this year. So far this year, she has a $5,000 short-term capital loss. As of June 1, she is holding 1,000 shares of Dritco st...

Q: George has a short-term capital loss of $42,

George has a short-term capital loss of $42,000 this year. His brother wants to buy a piece of land that George has owned as an investment for $60,000. The land’s basis is only $20,000. George also kn...

Q: Refer to the material in the preceding problem. Timberlake locates suitable

Refer to the material in the preceding problem. Timberlake locates suitable property that the owner would sell for $4,800,000 although the property appraises at only $4,250,000. Carroll Corporation is...