Questions from General Taxation

Q: Answer the following questions, assuming that the related divorce agreements were

Answer the following questions, assuming that the related divorce agreements were executed during 2016. a. Under a divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until t...

Q: Helen receives a $200,000 lump sum life insurance payment

Helen receives a $200,000 lump sum life insurance payment when her friend Alice dies. How much of the payment is taxable to Helen?

Q: In June of 2016, Kevin inherits stock worth $125,

In June of 2016, Kevin inherits stock worth $125,000. During the year, he collects $6,500 in dividends from the stock. How much of these amounts, if any, should Kevin include in his gross income for 2...

Q: Gwen is a tax accountant who works very hard for a large

Gwen is a tax accountant who works very hard for a large corporate client. The client is pleased and gives her a gift of $10,000 at year-end. How much of the gift is taxable to Gwen?

Q: Charlene receives a gift from her boyfriend of $10,000

Charlene receives a gift from her boyfriend of $10,000. He knows she is having financial problems and wants to help her. How much of the gift is taxable to Charlene?

Q: Robbie receives a scholarship of $20,000 to an elite

Robbie receives a scholarship of $20,000 to an elite private college. $12,000 of the scholarship is earmarked for tuition, and $8,000 covers his room and board. How much of the scholarship, if any, is...

Q: Skyler is covered by his company’s health insurance plan. The health

Skyler is covered by his company’s health insurance plan. The health insurance costs his company $3,500 a year. During the year, Skyler is diagnosed with a serious illness and health insurance pays $1...

Q: Ellen is a single taxpayer. Ellen’s employer pays $150 per

Ellen is a single taxpayer. Ellen’s employer pays $150 per month ($1,800 this year) for her health insurance. During the year, Ellen had medical expenses of $3,500 and the insurance company paid $2,00...

Q: a. Milton is a nurse whose employer provided meals for him

a. Milton is a nurse whose employer provided meals for him on the employer’s premises, since he is given only 30 minutes for lunch. Is the value of these meals taxable income to Milton? Explain b. Ma...

Q: Pete qualifies for a home office deduction. The amount of space

Pete qualifies for a home office deduction. The amount of space devoted to business use is 300 square feet of the total 1,200 square feet in his apartment. Pete’s total rent for the year is $9,600, an...