Questions from General Taxation

Q: On June 15, 2019, Allen sold land held for investment

On June 15, 2019, Allen sold land held for investment to Stan for $50,000 and an installment note of $250,000 payable in five equal annual installments beginning on June 15, 2020, plus interest at 10%...

Q: On July 1, 2019, Andrea sold land held for investment

On July 1, 2019, Andrea sold land held for investment to Taylor. Andrea’s land had a $300,000 basis and was subject to a $150,000 mortgage. Under the contractual agreement, Taylor will pay Andrea $85,...

Q: Which of the following statements is correct with regard to installment sales

Which of the following statements is correct with regard to installment sales? a. The contract price is generally the amount of cash the seller will receive. b. Sales by a taxpayer who is a dealer in...

Q: A taxpayer who sells her personal residence in 2019 may exclude some

A taxpayer who sells her personal residence in 2019 may exclude some or all of the gain on the sale if the residence was owned and lived in for a. At least four years before the sale date. b. Any tw...

Q: Marcus purchased Vinnie and Marie’s personal residence for $225,000

Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their $100,000 mortgage. Vinnie and Marie bought the house six years ago for $275,000 and have used it as...

Q: Daniel, who is single, purchased a house on May 15

Daniel, who is single, purchased a house on May 15, 1996, for $115,000. During the years he owned the house, he installed a swimming pool at a cost of $24,000 and replaced the driveway at a cost of $1...

Q: Explain who qualifies for the deductibility of moving expenses in 2019.

Explain who qualifies for the deductibility of moving expenses in 2019.

Q: All of the following relationships are considered related parties except

All of the following relationships are considered related parties except a. A corporation and a taxpayer whose spouse owns 80% of the corporation’s stock. b. A trust and a taxpayer who is the granto...

Q: On June 1, 2019, Nigel sells land (basis $

On June 1, 2019, Nigel sells land (basis $55,000) to his son Ted for $40,000, the land’s FMV on the date of the sale. On September 21, 2019, Ted sells the land to an unrelated party. Which of the foll...

Q: Bryce owns 200 shares of Basic Company stock that he purchased for

Bryce owns 200 shares of Basic Company stock that he purchased for $8,000 three years ago. On December 28, 2019, Bryce sold 100 shares of the stock for $2,500. On January 3, 2020, Bryce repurchased 50...