Questions from General Taxation

Q: Carey opens a law office in Chicago on January 1, 2016

Carey opens a law office in Chicago on January 1, 2016. On January 1, 2016, Carey purchases an annual subscription to a law journal for $170 and a 1-year legal reference service for $1,500. Carey also...

Q: Cooper and Brandy are married and file a joint income tax return

Cooper and Brandy are married and file a joint income tax return with two separate Schedule Cs. Cooper is an independent security specialist who spent $395 on uniforms during the year. His laundry exp...

Q: Sam owns an insurance agency and makes the following business gifts during

Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam’s deduction for business gifts.

Q: For each of the following independent cases, indicate the amount of

For each of the following independent cases, indicate the amount of gross income that must be included on the taxpayer’s 2016 income tax return. a. Malchia won a $4,000 humanitarian award. b. Rob won...

Q: Steinar loaned a friend $9,500 to buy some stock

Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became worthless. a. How much is Steinar’s deduction for the bad debt for this year? (Assume he has no other...

Q: Sharon is an orthopedic surgeon. She performed a surgery 2 years

Sharon is an orthopedic surgeon. She performed a surgery 2 years ago and billed $10,000 to her patient. After 2 years of attempting to collect the money, it is clear that she will not be able to colle...

Q: Carrie loaned her friend $4,500 to buy a used

Carrie loaned her friend $4,500 to buy a used car. She had her friend sign a note with repayment terms and set a reasonable interest rate on the note because the $4,500 was most of her savings. Her fr...

Q: Cindy operates a computerized engineering drawing business from her home. Cindy

Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office: Depreciation ………………………………………………….....

Q: Dick owns a house that he rents to college students. Dick

Dick owns a house that he rents to college students. Dick receives $800 per month rent and incurs the following expenses during the year: Real estate taxes $1,250 Mortgage interest 1,500 Ins...

Q: Sherry rents her vacation home for 6 months and lives in it

Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $950, and interest...