Questions from General Taxation

Q: This year, TT Corporation agreed to defer $100,000

This year, TT Corporation agreed to defer $100,000 compensation owed to Ms. Blass, the director of research. TT funded its obligation by transferring $100,000 cash to a trust administered by a local b...

Q: Corporation J sponsors a qualified profit-sharing plan for its employees

Corporation J sponsors a qualified profit-sharing plan for its employees. Three years ago, Ms. Purdy, a participant in the plan for more than 12 years, quit her job and left town without leaving a for...

Q: Mr. McNeil, age 50, is a self-employed

Mr. McNeil, age 50, is a self-employed writer who published 11 novels in the past 20 years. Each year, he makes the maximum contribution to his Keogh plan. This year, he borrowed $200,000 from the pla...

Q: Mr. and Mrs. Vishnu are the sole shareholders of VC

Mr. and Mrs. Vishnu are the sole shareholders of VC Enterprises. They are also employed by VC and participate in its qualified pension plan. VC is experiencing cash flow difficulties. To ease the stra...

Q: Mr. Norby, age 53, owns a traditional IRA with

Mr. Norby, age 53, owns a traditional IRA with a $215,000 current balance. Mr. Norby recently divorced his wife and transferred this IRA to her as part of the property settlement.

Q: Ms. Bourne is an executive with GG Inc., an international

Ms. Bourne is an executive with GG Inc., an international business operation. She flies more than 150,000 business miles each year and accumulates considerable frequent-flier points from the airlines....

Q: Herelt Inc., a calendar year taxpayer, purchased equipment for $

Herelt Inc., a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on April 1, 2019. The equipment was seven-year recovery property, and Herelt used the half-year convent...

Q: Mr. Keach is a professor at a private university. The

Mr. Keach is a professor at a private university. The university waives the tuition for a faculty member’s child who meets the entrance requirements. Mr. Keach’s two children are enrolled in degree pr...

Q: Mr. Donde has the full-time use of an automobile

Mr. Donde has the full-time use of an automobile owned and maintained by his employer. This year, Mr. Donde drove this company car 48,000 miles on business and 22,000 for personal reasons. He is not r...

Q: Ms. Larrick is employed at VD’s corporate headquarters and often works

Ms. Larrick is employed at VD’s corporate headquarters and often works late hours. The headquarters building is located in a high-crime urban area. As a result, corporate policy is that any employee l...