Questions from General Taxation

Q: Suzette inherited property from her father on April 19, 2017.

Suzette inherited property from her father on April 19, 2017. The FMV at the date of death was $40,000. The property was worth $35,000 six months later and had a basis to her father of $25,000. a....

Q: Using the following independent situations, answer the following questions:

Using the following independent situations, answer the following questions: Situation # 1 Clara received from her Aunt Sona property with a FMV at the date of the gift of $40,000. Aunt Sona purchas...

Q: Jordan took a business trip from New York to Denver. She

Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare...

Q: Davidson Industries, a sole proprietorship, sold the following assets in

Davidson Industries, a sole proprietorship, sold the following assets in 2017: Asset Cost Acquired Depreciation Sale Price Sale Date  Warehouse $150,000 10/10/10 $25,801 $175,000 3/15/17...

Q: Can the owner of rental property be treated as conducting a trade

Can the owner of rental property be treated as conducting a trade or business with respect to the rental property? If so, what must the taxpayer do for it to be considered a trade or business?

Q: In 2017, Rosalva sold stock considered short-term for a

In 2017, Rosalva sold stock considered short-term for a gain of $925 and stock considered long-term for a loss of $2,165. She also had a $3,000 short-term loss carryover from 2016 and a $1,240 long-t...

Q: Alice owns undeveloped land with an adjusted basis of $160,

Alice owns undeveloped land with an adjusted basis of $160,000. She sells the property to George for $205,000. a. What is Alice’s realized and recognized gain? b. To what IRC section does the gain...

Q: Jackie owns a temporary employment agency that hires personnel to perform accounting

Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her entertainment expenses for her clients include the following: Cab fare...

Q: In 2017 Landon has self-employment earnings of $195,

In 2017 Landon has self-employment earnings of $195,000. Compute Landon’s self- employment tax liability and the allowable income tax deduction of the self-employment tax paid.

Q: Haneen has taxable income of $115,000 without consideration of

Haneen has taxable income of $115,000 without consideration of capital gain or loss transactions. She has a short-term capital gain of $15,000, a long-term capital loss of $7,000, and a short-term ca...