Questions from General Taxation

Q: Determine Hazel’s Federal gross income from the following receipts for the year

Determine Hazel’s Federal gross income from the following receipts for the year. Gain on sale of Augusta County bonds …………………… $800 Interest on U.S. government savings bonds ……………… 400 Interest on st...

Q: Ray and Carin are partners in an accounting firm. The partners

Ray and Carin are partners in an accounting firm. The partners have entered into an arm’s length agreement requiring Ray to purchase Carin’s partnership interest from Carin’s estate if she dies before...

Q: Bob owns a collection agency. He purchases uncollected accounts receivable from

Bob owns a collection agency. He purchases uncollected accounts receivable from other businesses at 60% of their face value and then attempts to collect these accounts. During the current year, Bob co...

Q: Determine the treatment of a loss on rental property under the following

Determine the treatment of a loss on rental property under the following facts: Basis ………………………………………. $650,000 FMV before the loss……………………800,000 FMV after the loss……………………. 200,000

Q: Compute the income tax liability for each of the following unrelated C

Compute the income tax liability for each of the following unrelated C corporations. a. Darter Corporation has taxable income of $68,000. b. Owl Corporation has taxable income of $10,800,000. c. Touca...

Q: In the current year, Ed invests $30,000 in

In the current year, Ed invests $30,000 in an oil partnership. He has taxable income for the current year of $2,000 from the oil partnership and withdraws $10,000. What is Ed’s at-risk amount at the e...

Q: Lucy sells her partnership interest, a passive activity, with an

Lucy sells her partnership interest, a passive activity, with an adjusted basis of $305,000 for $330,000. In addition, she has current and suspended losses of $28,000 associated with the partnership a...

Q: Many years ago, Jack purchased 400 shares of Canary stock.

Many years ago, Jack purchased 400 shares of Canary stock. During the cur- rent year, the stock became worthless. It was determined that the company “went under” because several corporate officers emb...

Q: Mable and Jack file a joint return. For the current year

Mable and Jack file a joint return. For the current year, they had the following items: Salaries………………………………………………………………………………….$120,000 Loss on sale of § 1244 stock acquired two years ago…………………….10...

Q: Ella has $105,000 of losses from a real estate

Ella has $105,000 of losses from a real estate rental activity in which she actively participates. She has other rent income of $25,000 and other passive income of $32,000. Her AGI before considering...