Questions from General Taxation

Q: Casper used the following assets in his Schedule C trade or business

Casper used the following assets in his Schedule C trade or business in the tax year 2019. Casper is a new client and unfortunately does not have a copy of his prior year’s tax retu...

Q: Betsy acquired a new network system on June 5, 2019 (

Betsy acquired a new network system on June 5, 2019 (5-year class property), for $75,000. She expects taxable income from the business will always be about $175,000 without regard to the § 179 electio...

Q: Janet purchased her personal residence in 2009 for $250,000

Janet purchased her personal residence in 2009 for $250,000. In January 2019, she converted it to rental property. The fair market value at the time of conversion was $210,000. a. Determine the amount...

Q: On February 4, 2019, Jackie purchased and placed in service

On February 4, 2019, Jackie purchased and placed in service a car she purchased for $21,500. The car was used exclusively for her business. Compute Jackie’s cost recovery deduction in 2019 assuming no...

Q: Rueben acquires a warehouse on September 1, 2019, for $

Rueben acquires a warehouse on September 1, 2019, for $3 million. On March 1, 2023, he sells the warehouse. Determine Rueben’s cost recovery for 2019–2023:

Q: Michael is the sole proprietor of a small business. In June

Michael is the sole proprietor of a small business. In June 2019, his business income is $12,000 before consideration of any § 179 deduction. He spends $245,000 on furniture and equipment in 2019. If...

Q: On June 10, 2019, Huron purchased equipment (7-

On June 10, 2019, Huron purchased equipment (7-year class property) for $75,000. Determine Huron’s cost recovery deduction for computing 2019 taxable income. Assume that Huron does not make the § 179...

Q: Brittany purchased a building for $500,000 on January 1

Brittany purchased a building for $500,000 on January 1, 2011. The purchase price does not include land. Calculate the cost recovery for 2011 and 2019 if the real property is a. Residential real prope...

Q: In 2017, Jessica bought a new heavy truck for $45

In 2017, Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietor-ship. Total miles driven include 12,000 in 2017, 14,500 in 2018, and 13,000 in 2019. a. If Jessica uses the sta...

Q: The Subchapter S status of a calendar-year corporation is statutorily

The Subchapter S status of a calendar-year corporation is statutorily terminated on August 12, 2019. The Subchapter S status is deemed to be terminated on what date? What is the answer if the status w...