Questions from General Taxation

Q: Jan has two jobs during 2016. One employer withheld and paid

Jan has two jobs during 2016. One employer withheld and paid Social Security taxes on $70,000 of Jan’s salary, and the other employer withheld and paid Social Security taxes on $49,500 in salary paid...

Q: For each of the following payments, indicate the form that should

For each of the following payments, indicate the form that should be used to report the payment: a. Interest of $400 paid by a bank b. Payment of $400 in dividends by a corporation to a shareholder c....

Q: Philcon Corporation (P.O. Box 4563, Anchorage,

Philcon Corporation (P.O. Box 4563, Anchorage, AK 99508; EIN 12-3456789) paid Louise Chugach, an employee who lives at 5471 East Tudor Road, Anchorage, AK 99508, wages of $124,554 in 2016. The income...

Q: Fly-By-Night (P.O. Box 1234

Fly-By-Night (P.O. Box 1234, Dallas, TX 75221, EIN 12-9876543) paid George Smith, an employee who lives at 432 Second Street, Garland, TX 75040, wages of $24,300. The income tax withholding amounted t...

Q: Is it possible to depreciate a residential rental building when it is

Is it possible to depreciate a residential rental building when it is actually increasing in value? Why?

Q: Stewart Beauf is a self-employed surfboard maker in 2016.

Stewart Beauf is a self-employed surfboard maker in 2016. His Schedule C net income is $115,000 for the year. He also has a part-time job and earns $9,100 in wages subject to FICA taxes. Calculate Ste...

Q: Thomas is an employer with one employee, Sarah. Sarah’s wages

Thomas is an employer with one employee, Sarah. Sarah’s wages are $19,450, and the state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas: a. FUTA tax before the state...

Q: Sally hires a maid to work in her home for $260

Sally hires a maid to work in her home for $260 per month. The maid is 25 years old and not related to Sally. During 2016, the maid worked 10 months for Sally. a. What is the amount of Social Security...

Q: Ann hires a nanny to watch her two children while she works

Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $165 per week for 46 weeks during the current year. a. What is the employer’s portion of...

Q: Married taxpayers Otto and Ruth are both self-employed. Otto

Married taxpayers Otto and Ruth are both self-employed. Otto earns $352,000 of selfemployment income and Ruth has a self-employment loss of $13,500. How much Medicare surtax for high-income taxpayers...