Questions from General Taxation

Q: Cheryl owned six horses that she and her family used for riding

Cheryl owned six horses that she and her family used for riding and occasionally showing in hunter-jumper competitions. At the beginning of May, one of the horses showed signs of severe illness and wa...

Q: Joe, June, and Jim—coworkers—decide that they

Joe, June, and Jim—coworkers—decide that they want to start their own business. Joe has $200,000 to contribute, June has equipment valued at $100,000 (basis = $90,000), and Jim has real estate suitabl...

Q: Two years ago, Herbert, a widower, made a gift

Two years ago, Herbert, a widower, made a gift of marketable securities to his 35-year-old daughter, Sabrina, on which he paid a federal gift tax of $3 million. When Herbert died in 2017, his estate h...

Q: Samantha is a single parent providing the sole support for her six

Samantha is a single parent providing the sole support for her six-year-old daughter, Hillary. They live in an area where the public school is known to have problems with drugs and other crimes. Saman...

Q: Chester provides you with the following income information for years 1 through

Chester provides you with the following income information for years 1 through 3, exclusive of capital loss carryovers: Determine the amount and type of capital loss deduction each year, if any, and...

Q: Go to the IRS Web site (www.irs.gov

Go to the IRS Web site (www.irs.gov) and locate the instructions for Form 706-NA for the estate of a nonresident alien. a. What is the definition of a nonresident alien decedent? b. Under what circum...

Q: Go to the IRS Web site (www.irs.gov

Go to the IRS Web site (www.irs.gov) and locate instructions for Form 1120. If a corporation has less than $250,000 of total receipts and total assets at the end of the tax year, which schedules inclu...

Q: Go to the IRS Web site (www.irs.gov

Go to the IRS Web site (www.irs.gov) and locate Publication 538: Accounting Periods and Methods. How does a corporation make an election to use a 52-53-week tax year?

Q: Locate the Schedule D and the accompanying instructions for both an individual

Locate the Schedule D and the accompanying instructions for both an individual and a corporation on the IRS Web site, www.irs.gov. Compare the length of the two forms and the instructions as they appe...

Q: Using the IRS Web site, www.irs.gov,

Using the IRS Web site, www.irs.gov, locate the information and instructions for reporting the sale of a personal residence. Write a summary of what the taxpayer needs to do to elect Section 121 gain...