Questions from Individual Taxation

Q: Mel and Cindy Gibson’s 12-year-old daughter Rachel was

Mel and Cindy Gibson’s 12-year-old daughter Rachel was abducted on her way home from school on March 15, 2016. Police reports indicated that a stranger had physically dragged Rachel into a waiting car...

Q: Bob Ryan filed his tax return and claimed a dependency exemption for

Bob Ryan filed his tax return and claimed a dependency exemption for his 16-year-old son Dylan. Both Bob and Dylan are citizens and residents of the United States. Dylan meets all the necessary requir...

Q: Kimberly is divorced and the custodial parent of a 3-year

Kimberly is divorced and the custodial parent of a 3-year-old girl named Bailey. Kimberly and Bailey live with Kimberly’s parents, who pay all the costs of maintaining the household (such as mortgage,...

Q: Lee is 30 years old and single. Lee paid all the

Lee is 30 years old and single. Lee paid all the costs of maintaining his household for the entire year. Determine Lee’s filing status in each of the following alternative situations: a. Lee is Ashton...

Q: Ray Albertson is 72 years old and lives by himself in an

Ray Albertson is 72 years old and lives by himself in an apartment in Salt Lake City. Ray’s gross income for the year is $3,000. Ray’s support is provided as follows: Himself (11%), his daughters Dian...

Q: Juan and Bonita are married and have two dependent children living at

Juan and Bonita are married and have two dependent children living at home. This year, Juan is killed in an avalanche while skiing. a. What is Bonita’s filing status this year? b. Assuming Bonita do...

Q: Gary and Lakesha were married on December 31 last year. They

Gary and Lakesha were married on December 31 last year. They are now preparing their taxes for the April 15 deadline and are unsure of their filing status. a. What filing status options do Gary and L...

Q: Elroy, who is single, has taken over the care of

Elroy, who is single, has taken over the care of his mother Irene in her old age. Elroy pays the bills relating to Irene’s home. He also buys all her groceries and provides the rest of her support. Ir...

Q: Relative to arm’s-length transactions, why do related-party

Relative to arm’s-length transactions, why do related-party transactions receive more IRS scrutiny?

Q: Kano and his wife Hoshi have been married for 10 years and

Kano and his wife Hoshi have been married for 10 years and have two children under the age of 12. The couple has been living apart for the last two years and both children live with Kano. Kano has pro...