Questions from General Taxation

Q: Mike Saxon is negotiating the purchase of a business. The final

Mike Saxon is negotiating the purchase of a business. The final purchase price has been agreed upon, but the allocation of the purchase price to the assets is still being discussed. Appraisals on a w...

Q: Santiago and Amy are married and file a joint tax return

Santiago and Amy are married and file a joint tax return claiming their three children, ages 12, 14, and 18, as dependents. Their AGI is $140,000. Deter- mine the amount of the couple’s child tax cre...

Q: Casper and Cecile are divorced this year. As part of the

Casper and Cecile are divorced this year. As part of the divorce settlement, Casper transferred stock to Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the dat...

Q: Compute the taxable Social Security benefits in each of the following situations

Compute the taxable Social Security benefits in each of the following situations: a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $46,000, no tax-exem...

Q: Jarrod receives a scholarship of $18,500 from Riggers University

Jarrod receives a scholarship of $18,500 from Riggers University to be used to pursue a bachelor’s degree. He spends $12,000 on tuition, $1,500 on books and supplies, $4,000 for room and board, and $1...

Q: Pierre, a cash basis, unmarried taxpayer, had $1

Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax with- held during 2015. Also in 2015, Pierre paid $455 that was due when he filed his 2014 state income tax return and made est...

Q: Troy’s financial records for the year reflect the following: Interest

Troy’s financial records for the year reflect the following: Interest income from bank savings account………………………………. $ 900 Taxable annuity receipts……………………………………………………………. 1,800 Safe deposit box renta...

Q: Miller owns a personal residence with a fair market value of $

Miller owns a personal residence with a fair market value of $195,000 and an outstanding first mortgage of $157,500. Miller gets a second mortgage on the residence and in return borrows $10,000 to pur...

Q: Donna donates stock in Chipper Corporation to the American Red Cross on

Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2015. She purchased the stock for $18,100 on December 28, 2014, and it had a fair market value of $27,000 when she...

Q: Issac has AGI of $73,400 and incurred the following

Issac has AGI of $73,400 and incurred the following expenses. How much of the business and personal expenditures are deductible (after any limitation) either as miscellaneous itemized deductions or as...