Questions from General Taxation

Q: LMNO Corporation was formed in 2011. It reported net income (

LMNO Corporation was formed in 2011. It reported net income (loss) over the 2011 through 2017 tax years, before accounting for any net operating losses, as follows: 2011……………………….$ (4,000) 2012………………...

Q: In 2018, Tomas, a single taxpayer, had $3

In 2018, Tomas, a single taxpayer, had $3,750 in state tax withheld from his paycheck. He properly deducted that amount on his 2018 tax return as an itemized deduction that he qualified for, thus redu...

Q: Tyrone and Akira, who are married, incurred and paid the

Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019: Home acquisition debt interest ……………………………... $15,000 Credit card interest …………………………………………………. 5,00...

Q: Jaylen made a charitable contribution to his church in the current year

Jaylen made a charitable contribution to his church in the current year. He donated common stock valued at $33,000 (acquired as an investment in 2005 for $13,000). Jaylen’s AGI in the current year is...

Q: In 2019 Arturo’s pleasure boat that he purchased in 2013 for $

In 2019 Arturo’s pleasure boat that he purchased in 2013 for $48,500 was destroyed by a hurricane in a part of Florida that was declared a federal disaster area. His loss was not totally covered by hi...

Q: In 2017, Gerald loaned Main Street Bakery $55,000

In 2017, Gerald loaned Main Street Bakery $55,000. In 2018, he learned that he would probably receive only $6,400 of the loan. In 2019, Gerald received $3,000 in final settlement of the loan. Calculat...

Q: Jose purchased a vehicle for business and personal use. In 2019

Jose purchased a vehicle for business and personal use. In 2019, he used the vehicle 18,000 miles (80% of total) for business and calculated his vehicle expenses using the standard mileage rate (milea...

Q: Eric, who is single, has income from his Schedule C

Eric, who is single, has income from his Schedule C of $150,000. His taxable income is $120,000 after his other deductions. What is Eric’s QBI deduction for 2019?

Q: A calendar-year corporation properly files a Subchapter S election on

A calendar-year corporation properly files a Subchapter S election on January 10, 2019. On what date is the election effective? What if the election were filed on June 1, 2019?

Q: In 2019, Landon has self-employment earnings of $195

In 2019, Landon has self-employment earnings of $195,000. Compute Landon’s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid. SE tax: SE deduction: