Questions from General Taxation

Q: Jacob purchased business equipment for $56,000 in 2012 and

Jacob purchased business equipment for $56,000 in 2012 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2015 for $26,000. What is the amount and character of Jacob’s g...

Q: An apartment building was acquired in 2006. The depreciation taken on

An apartment building was acquired in 2006. The depreciation taken on the building was $123,000, and the building was sold for a $34,000 gain. What is the maximum amount of 25% gain?

Q: Gaston Corporation distributes § 1245 property as a dividend to its share

Gaston Corporation distributes § 1245 property as a dividend to its share- holders. The property’s fair market value is $580,000, and the adjusted basis is $560,000. In addition, the amount of the rec...

Q: Paola and Isidora are married, file a joint tax return,

Paola and Isidora are married, file a joint tax return, report modified AGI of $148,000, and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for Dant...

Q: A business building on which straight-line depreciation of $13

A business building on which straight-line depreciation of $13,000 was taken is sold on the installment basis for $100,000 with $20,000 down and four yearly installments of $20,000 plus interest. The...

Q: An individual taxpayer sells some used assets at a garage sale.

An individual taxpayer sells some used assets at a garage sale. Why are none of the proceeds taxable in most situations?

Q: Alison owns a painting that she received as a gift from her

Alison owns a painting that she received as a gift from her aunt 10 years ago. The aunt created the painting. Alison has displayed the painting in her home and has never attempted to sell it. Recently...

Q: Carlson’s general business credit for the current year is $84,

Carlson’s general business credit for the current year is $84,000 His net income tax is $190,000, tentative minimum tax is $175,000, and net regular tax liability is $185,000. He has no other tax cred...

Q: During the year, Eugene had the four property transactions summarized below

During the year, Eugene had the four property transactions summarized below. Eugene is a collector of antique glassware and occasionally sells a piece to get funds to buy another. What are the amount...

Q: Rennie owns a video game arcade. He buys vintage video games

Rennie owns a video game arcade. He buys vintage video games from estates, often at much less than the retail value of the property. He usually installs the vintage video games in a special section of...