Questions from General Taxation

Q: In what instances could again be recorded associated with the issuance of

In what instances could again be recorded associated with the issuance of stock upon formation of a corporation? Assume that the 80% test is met.

Q: Moe, Johnny, and Raymond form a partnership and contribute the

Moe, Johnny, and Raymond form a partnership and contribute the following assets: Johnny’s building has a mortgage of $60,000, which the partnership assumes. a. Do any of the partn...

Q: Christine died owning an interest in a passive activity property. The

Christine died owning an interest in a passive activity property. The property had an adjusted basis of $210,000, a fair market value of $224,000, and suspended losses of $21,000. What can be deducted...

Q: Bryan and Gayle are equal partners in BG Partnership. The partnership

Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of income and expense: Ordinary income from operations…………………$13,000 Interest income…………………………………...

Q: Indicate whether the property acquired qualifies as replacement property for each of

Indicate whether the property acquired qualifies as replacement property for each of the following involuntary conversions: a. The Harts’ personal residence is destroyed by a hurricane. They decide no...

Q: Jessica’s office building is destroyed by fire on November 15, 2017

Jessica’s office building is destroyed by fire on November 15, 2017. The adjusted basis of the building is $410,000. She receives insurance proceeds of $550,000 on December 12, 2017. a. Calculate he...

Q: Lucy has AGI of $120,000 before considering losses from

Lucy has AGI of $120,000 before considering losses from some rental real estate she owns (she actively participates). She had the following losses from her rental property: Rental property 1………………………...

Q: Pedro sells investment land on September 1, 2017. Information pertaining

Pedro sells investment land on September 1, 2017. Information pertaining to the sale follows: Adjusted basis …………………………………..$25,000 Selling price………………….…………………….90,000 Selling expenses……….…………………………...

Q: Hunter has a $38,000 loss from an investment in

Hunter has a $38,000 loss from an investment in a partnership in which he does not participate. His basis in the interest is $35,000. a. How much of the loss is disallowed by the at-risk rules? b. H...

Q: Jackson invested $190,000 in a passive activity five years

Jackson invested $190,000 in a passive activity five years ago. On January 1, 2015, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss...