Questions from General Taxation

Q: Jane and Robert Brown are married and have eight children, all

Jane and Robert Brown are married and have eight children, all of whom are eligible to be claimed as the couple’s dependents. Robert earns $94,000 working as an accountant, and Jane earns $35,000 as a...

Q: Charles has a tentative general business credit of $42,000

Charles has a tentative general business credit of $42,000 for the current year. His net regular tax liability before the general business credit is $107,000, and his tentative minimum tax is $88,000....

Q: Oak Corporation holds the following general business credit carryovers. /

Oak Corporation holds the following general business credit carryovers. If the general business credit generated by activities during 2015 equals $36,000 and the total credit allowed during the curre...

Q: In January 2014, Iris Corporation purchased and placed in service a

In January 2014, Iris Corporation purchased and placed in service a 1933 building that houses retail businesses. The cost was $300,000, of which $25,000 applied to the land. In modernizing the facilit...

Q: In the current year, Paul Chaing (4522 Fargo Street,

In the current year, Paul Chaing (4522 Fargo Street, Geneva, IL 60134) acquires a qualifying historic structure for $350,000 (excluding the cost of the land) and plans to substantially rehabilitate th...

Q: The tax credit for rehabilitation expenditures is available to help offset the

The tax credit for rehabilitation expenditures is available to help offset the costs related to substantially rehabilitating certain buildings. The credit is calculated on the rehabilitation expenditu...

Q: Green Corporation hires six individuals on January 4, 2015, all

Green Corporation hires six individuals on January 4, 2015, all of whom qualify for the work opportunity credit. Three of these individuals receive wages of $8,500 during 2015, and each individual wor...

Q: In March 2015, Sparrow Corporation hired three individuals—Austin,

In March 2015, Sparrow Corporation hired three individuals—Austin, Adam, and Angela—all of whom are certified as long-term family assistance recipients. Each of these individuals earned $11,000 during...

Q: Tom, a calendar year taxpayer, informs you that during the

Tom, a calendar year taxpayer, informs you that during the year, he incurs expenditures of $40,000 that qualify for the incremental research activities credit. In addition, it is determined that his r...

Q: Ahmed Zinna (16 Southside Drive, Charlotte, NC 28204),

Ahmed Zinna (16 Southside Drive, Charlotte, NC 28204), one of your clients, owns two retail establishments in downtown Charlotte and has come to you seeking advice concerning the tax consequences of c...