Questions from General Taxation

Q: How can a taxpayer determine the basis of units from a mutual

How can a taxpayer determine the basis of units from a mutual fund?

Q: Briefly describe the types of income that are reported on a Schedule

Briefly describe the types of income that are reported on a Schedule E.

Q: Explain how gains (losses) from the sale of property acquired

Explain how gains (losses) from the sale of property acquired as a gift are taxed.

Q: What is meant by the term flow-through entity? Give

What is meant by the term flow-through entity? Give some examples.

Q: How are the income and losses from a flow-through entity

How are the income and losses from a flow-through entity reported to the taxpayer (partner, shareholder or owner)? Are all of the items from the flow-through entity reported on the same form? Explai...

Q: What is the difference between a deductible repair expense and a capital

What is the difference between a deductible repair expense and a capital improvement of a rental property?

Q: When depreciation is deducted on a rental property, why is it

When depreciation is deducted on a rental property, why is it beneficial for the taxpayer to allocate the cost of the property to other assets (furniture, appliances, etc.) connected with the property...

Q: Les’s personal residence is in uptown New Orleans. Every year during

Les’s personal residence is in uptown New Orleans. Every year during Mardi Gras, Les rents his house for 10 days to a large corporation that uses it to entertain clients. How does Les treat the rent...

Q: Explain how the foreign tax credit limitation works.

Explain how the foreign tax credit limitation works.

Q: Taxpayers can claim a child tax credit for a qualifying child.

Taxpayers can claim a child tax credit for a qualifying child. Define qualifying child.