Questions from General Taxation

Q: William is not married, nor does he have any dependents.

William is not married, nor does he have any dependents. He does not itemize deductions. His taxable income for 2019 was $87,000 and his regular tax was $15,061. His AMT adjustments totaled $125,000....

Q: William is not married, nor does he have any dependents.

William is not married, nor does he have any dependents. He does not itemize deductions. His taxable income for 2019 was $87,000 and his regular tax was $15,061. His AMT adjustments totaled $125,000....

Q: Herbie is the owner of two apartment buildings. Following is information

Herbie is the owner of two apartment buildings. Following is information related to the two buildings: Herbie elected the maximum depreciation available for each asset. What is the effect of depreciat...

Q: Arnold exercised an incentive stock option in 2016, acquiring 1,

Arnold exercised an incentive stock option in 2016, acquiring 1,500 shares of stock at an option price of $80 per share. The FMV of the stock at the date of exercise was $110 per share. In 2018, the r...

Q: Barbara is single and owns a home in the city, which

Barbara is single and owns a home in the city, which is her primary residence. She also owns a cottage at the beach, which she treats as a vacation home. In April 2019, she borrowed $50,000 on a home...

Q: Kerry is a partner in the Kerry, Davis, Smith &

Kerry is a partner in the Kerry, Davis, Smith & Jones Partnership. Kerry owned 25% from January 1, 2019, to June 30, 2019, when he bought Jones’s 25% interest. He owned 50% or the rest of the year. Th...

Q: Zach contributed land with an FMV of $25,000 and

Zach contributed land with an FMV of $25,000 and a basis of $14,000 to a partnership on April 5, 2013. On June 6, 2019, the partnership distributed the land to Art, a partner in the same partnership....

Q: Alcott invested $20,000 for a 25% interest in

Alcott invested $20,000 for a 25% interest in a partnership (not a passive activity) on January 1, 2019. The partnership borrowed $100,000 (with full recourse to the partners) on January 15, 2019, to...

Q: Calvin purchased a 40% partnership interest for $43,000

Calvin purchased a 40% partnership interest for $43,000 in February 2017. His share of partnership income in 2017 was $22,000, in 2018 was $25,000, and in 2019 was $12,000. He made no additional contr...

Q: Determine taxable income in each of the following independent cases. In

Determine taxable income in each of the following independent cases. In all cases, the company was very profitable in all years prior to 2017 and it had retained earnings of $1,000,000 at the end of 2...