Questions from General Taxation

Q: Until March of this year, Mr. George took care of

Until March of this year, Mr. George took care of his invalid mother in his own home and provided 100 percent of her financial support. In March, she became eligible for Medicaid, and Mr. George moved...

Q: Mr. Tilton is a 20-year-old college student

Mr. Tilton is a 20-year-old college student. This year he lived on campus for nine months and in his parents’ home during the summer. His parents paid for all Mr. Tilton’s living expenses, but a schol...

Q: Mr. and Mrs. Bosco have an 11-year-

Mr. and Mrs. Bosco have an 11-year-old child. The couple is divorced, and Mrs. Bosco has sole custody of the child. However, Mr. Bosco pays his former wife $1,200 child support each month.

Q: Mr. Glenn, age 90, lives in a nursing home

Mr. Glenn, age 90, lives in a nursing home. He has no gross income and is financially dependent on his four adult children, each of whom pays 25 percent of the cost of the home.

Q: Mr. Pitcock’s AGI includes an $8,700 dividend paid

Mr. Pitcock’s AGI includes an $8,700 dividend paid by a German corporation and $11,600 interest paid by a Canadian bank. He paid $3,000 foreign income tax this year.

Q: Warren Company is a calendar year, cash basis firm. On

Warren Company is a calendar year, cash basis firm. On December 6, 2019, Warren paid $7,200 cash to a landscape service business that maintains the lawns and gardens around Warren’s headquarters. How...

Q: Mr. and Mrs. Wynne have full-time jobs.

Mr. and Mrs. Wynne have full-time jobs. They employ Mrs. Wynne’s 18-year-old sister as an after-school babysitter for their 10-year-old son.

Q: Mr. Severson, a self-employed attorney, has sole

Mr. Severson, a self-employed attorney, has sole custody of his nineyear- old daughter. This year she spent eight weeks during the summer at a recreational camp. The total cost was $3,800.

Q: Mr. Trudel and Mr. Varga founded TV Corporation six years

Mr. Trudel and Mr. Varga founded TV Corporation six years ago and have devoted every waking hour to the corporate business. During the first four years, neither shareholder received a salary. During t...

Q: Ms. Jorgen recently moved from Boston to Pittsburgh to take a

Ms. Jorgen recently moved from Boston to Pittsburgh to take a job with OP Inc. She sold her home in Boston, and OP paid the $14,500 realtor’s commission on the sale.