Questions from General Taxation

Q: Ann and Bill were on the list of a local adoption agency

Ann and Bill were on the list of a local adoption agency for several years, seeking to adopt a child. Finally, in 2014, good news came their way, and an adoption seemed imminent. They paid qualified a...

Q: Paul and Karen are married, and both are employed (Paul

Paul and Karen are married, and both are employed (Paul earns $44,000 and Karen earns $9,000 during 2015). Paul and Karen have two dependent children, both under the age of 13. So they can work, Paul...

Q: Crane and Loon Corporations, two unrelated C corporations, have the

Crane and Loon Corporations, two unrelated C corporations, have the following transactions for 2015: a. Compute the dividends received deduction for Crane Corporation. b. Compute the dividends receive...

Q: Jim and Mary Jean are married and have two dependent children under

Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and during 2015 earn salaries as follows: $16,000 (Jim) and $5,200 (Mary Jean). T...

Q: Bernadette, a longtime client of yours, is an architect and

Bernadette, a longtime client of yours, is an architect and the president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing educati...

Q: Mark and Lisa are approaching an exciting time in their lives as

Mark and Lisa are approaching an exciting time in their lives as their oldest son, Austin, graduates from high school and moves on to college. What are some of the tax issues Mark and Lisa should cons...

Q: For many years, Loretta Johnson, a single mother of three

For many years, Loretta Johnson, a single mother of three children, has been struggling to make ends meet by working at two jobs that pay barely the minimum wage and together provide just over $15,000...

Q: Joyce, a widow, lives in an apartment with her two

Joyce, a widow, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2015. She uses the standard deduction. a. Calculate the amount, if any...

Q: William and Abigail, who live in San Francisco, have been

William and Abigail, who live in San Francisco, have been experiencing problems with their marriage. They have a 3-year-old daughter, April, who stays with William’s parents during the day because bot...

Q: Sam and Abby are dependents of their parents, and each has

Sam and Abby are dependents of their parents, and each has income of $2,100 for the year. Sam’s standard deduction for the year is $1,050, while Abby’s is $2,450. As their income is the same, what cau...