Questions from General Taxation

Q: Agnes and Aunt Sue each invested $140,000 cash in

Agnes and Aunt Sue each invested $140,000 cash in the A&S Partnership, and each received a 50% interest in the partnership. To finance her investment in the partnership, Agnes borrowed $60,000 on a fu...

Q: Which of the following would be considered a passive activity?

Which of the following would be considered a passive activity? a. A limited partnership interest. b. Most rental real estate activities. c. A trade or business in which the taxpayer does not material...

Q: Sylvester, an accountant, owns a mail-order business in

Sylvester, an accountant, owns a mail-order business in which he participates. He has one employee who works part time in the business. Which of the following statements is not correct? a. If Sylvest...

Q: Janel owns five small businesses, each of which has its own

Janel owns five small businesses, each of which has its own manager and employees. Janel spends the following number of hours this year working in the various businesses: Business A, 130 hours; Busine...

Q: Samuel is a CPA and earns $150,000 from his

Samuel is a CPA and earns $150,000 from his practice in the current year. He also has an ownership interest in three passive activities. Assume he is sufficiently at risk in each of the three partners...

Q: Nathaniel has AGI (before any rental loss) of $65

Nathaniel has AGI (before any rental loss) of $65,000. He also owns several rental properties in which he actively participates. The rental properties produced a $30,000 loss in the current year. Nath...

Q: Basil has $130,000 AGI (before any rental loss

Basil has $130,000 AGI (before any rental loss). He also owns several rental properties in which he actively participates. The rental properties produced a $30,000 loss in the current year. How much,...

Q: How do the time and distance factors for qualifying moving expenses come

How do the time and distance factors for qualifying moving expenses come into play for 2019?

Q: Raymond sells his entire interest in a rental property in which he

Raymond sells his entire interest in a rental property in which he actively participated at a gain of $18,000. The activity has a current year loss of $5,500 and $18,500 in prior-year suspended losses...

Q: Jacob is single with no dependents. During 2019 he has $

Jacob is single with no dependents. During 2019 he has $48,000 of taxable income. He also has $28,000 of positive AMT adjustments and $12,000 of tax preferences. Jacob does not itemize his deductions...