Questions from General Taxation

Q: Roby and James have been married for nine years. Roby sells

Roby and James have been married for nine years. Roby sells Plum, Inc. stock that she has owned for four years to James for its fair market value of $180,000. Her adjusted basis is $200,000. a. Calcul...

Q: If a taxpayer sells property for cash, the amount realized consists

If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following, indicate the effect on the amount realized: a. The property is sold on...

Q: Meredith, who is single, would like to contribute $5

Meredith, who is single, would like to contribute $5,500 to her Roth IRA. What is the maximum amount that Meredith can contribute if her AGI is $117,000?

Q: Emerald Corporation, a calendar year and accrual method taxpayer, provides

Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M–1 for 2015: Net income per books (after-tax) ………………………………………………...

Q: Valentino is a patient in a nursing home for 45 days in

Valentino is a patient in a nursing home for 45 days in 2015. While in the nursing home, he incurs total costs of $13,500. Medicare pays $8,000 of the costs. Valentino receives $15,000 from his long-t...

Q: Mio was transferred from New York to Germany. He lived and

Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2015. Mio’s salary for 2015 is $190,000. What is Mio’s foreign earned income exclusion?

Q: Samantha was recently employed by an accounting firm. During the year

Samantha was recently employed by an accounting firm. During the year, she spends $2,500 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $...

Q: Robert entertains four key clients and their spouses at a nightclub

Robert entertains four key clients and their spouses at a nightclub. Expenses were $200 (limo charge), $120 (cover charge), $700 (drinks and dinner), and $140 (tips to servers). If Robert is self-emp...

Q: In 2015, Miranda records net earnings from self-employment of

In 2015, Miranda records net earnings from self-employment of $146,000. She has no other income. Determine the amount of Miranda’s self-employment tax and her for AGI income tax deduction.

Q: Myers, who is single, has compensation income of $68

Myers, who is single, has compensation income of $68,000 in 2015. He is an active participant in his employer’s qualified retirement plan. Myers contributes $5,500 to a traditional IRA. Of the $5,500...