Questions from General Taxation

Q: Your supervisor has asked you to research the following situation concerning Shanita

Your supervisor has asked you to research the following situation concerning Shanita Mauer. Shanita worked and lived in Los Angeles, CA. She accepted a new position with her firm in Dallas, TX. During...

Q: Professor Vanessa Lazo received a free tour to Costa Rica in a

Professor Vanessa Lazo received a free tour to Costa Rica in a drawing at a professional conference. Professor Lazo has asked for your help in determining whether the free tour that she received is ta...

Q: Your supervisor has asked you to research a potential tax deduction for

Your supervisor has asked you to research a potential tax deduction for a client, Nancy Fradette. Nancy is a seat-filler at a number of the award shows that are filmed in the greater Los Angeles area....

Q: Robert, a new client of yours, is a self-

Robert, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico. Robert drives his personal van when delivering catered meals to customers. You have asked him to provide the amount o...

Q: 1. Indicate whether each of the items listed below would be

1. Indicate whether each of the items listed below would be included (I) in or excluded (E) from gross income for the 2016 tax year. a. Welfare payments b. Commissions c. Hobby income d. Scholarships...

Q: John installed a new roof on his friend’s house in return for

John installed a new roof on his friend’s house in return for a used truck worth $6,000. How much income must John report on his tax return for his services?

Q: Larry is a tax accountant and Sheila is a hairdresser. Larry

Larry is a tax accountant and Sheila is a hairdresser. Larry prepares Sheila’s tax return for free and Sheila agrees to style Larry’s hair six times for free in return for the tax return. The value of...

Q: David is certified by his doctor as terminally ill with liver disease

David is certified by his doctor as terminally ill with liver disease. His doctor certifies that he cannot reasonably be expected to live for more than a year. He sells his life insurance policy to Vi...

Q: Kerry and Jim have a successful marijuana farm in the woods around

Kerry and Jim have a successful marijuana farm in the woods around Humboldt County, California. Growing marijuana is illegal for federal purposes. Are Kerry and Jim required by law to report the incom...

Q: How are qualified dividends taxed in 2016? Please give the rates

How are qualified dividends taxed in 2016? Please give the rates of tax which apply to qualified dividends, and specify when each of these rates applies.