Questions from General Taxation

Q: Dante and Rosa, both under 65 and married, have a

Dante and Rosa, both under 65 and married, have a combined AGI of $45,000 in year 2019. Due to certain heart issues, Dante has been prescribed Lipitor® by a physician. For year 2019, Dante spent a tot...

Q: Judy acquired passive Activity A in January 2014 and Activity B in

Judy acquired passive Activity A in January 2014 and Activity B in July 2015. Until 2019 Activity A was profitable. Activity A produced a loss of $50,000 in 2019 and a loss of $75,000 in 2020. She has...

Q: Leslie and Jason, who are married, paid the following expenses

Leslie and Jason, who are married, paid the following expenses during 2019: Interest on a car loan ……………………………………………………………………………… $ 100 Interest on lending institution loan ……………………………………………………………………...

Q: In 2019, Kirsten invested $20,000 for a 10

In 2019, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has losses of $150,000 in 2019 and $250,000 in 2020. Kirsten’s share of the partnership’s los...

Q: Carlton holds undeveloped land for investment. His adjusted basis in the

Carlton holds undeveloped land for investment. His adjusted basis in the land is $200,000, and the FMV is $325,000. On November 1, 2019, he exchanges this land for land owned by his son, who is 31 yea...

Q: Julia acquired passive Activity A in January 2015 and passive Activity B

Julia acquired passive Activity A in January 2015 and passive Activity B in July 2017. Until 2018 Activity A was profitable. Activity A produced a loss of $150,000 in 2018 and a loss of $150,000 in 20...

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, 2017, his at risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss...

Q: Denise contributes the following assets to a partnership in exchange for a

Denise contributes the following assets to a partnership in exchange for a 25% partnership interest: What is Denise’s beginning basis in her partnership interest?

Q: On April 1, 2019, Paul sold a house to Amy

On April 1, 2019, Paul sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1, 2019. Amy paid the full amount of property tax of $2,500. Calculate b...

Q: In 2017, Jerry acquired an interest in a partnership in which

In 2017, Jerry acquired an interest in a partnership in which he is not a material participant. The partnership was profitable until 2018. Jerry’s basis in the partnership interest at the beginning of...