Questions from Individual Taxation

Q: Matteo, who is single and has no dependents, was planning

Matteo, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Matteo’s employer called and offered him $500 in overtime pay if he would agree to work...

Q: Rank the following three single taxpayers in order of the magnitude of

Rank the following three single taxpayers in order of the magnitude of taxable income (from lowest to highest) and explain your results.

Q: Aishwarya’s husband passed away in 2015. She needs to determine whether

Aishwarya’s husband passed away in 2015. She needs to determine whether Jasmine, her 17-year old stepdaughter who is single, qualifies as her dependent in 2016. Jasmine is a resident but not a citizen...

Q: Ken is 63 years old and unmarried. He retired at age

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this...

Q: Consider the following letter and answer Shady’s question. To my

Consider the following letter and answer Shady’s question. To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the y...

Q: Diana and Ryan Workman were married on January 1 of last year

Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a s...

Q: Charlie was hired by Ajax this year as a corporate executive and

Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf....

Q: Contrast the constructive receipt doctrine with the claim of right doctrine.

Contrast the constructive receipt doctrine with the claim of right doctrine.

Q: Dewey is a lawyer who uses the cash method of accounting.

Dewey is a lawyer who uses the cash method of accounting. Last year Dewey provided a client with legal services worth $55,000, but the client could not pay the fee. This year Dewey requested that in l...

Q: Clyde and Bonnie were married this year. Clyde has a steady

Clyde and Bonnie were married this year. Clyde has a steady job that will pay him about $37,000 while Bonnie does odd jobs that will produce about $28,000 of income. They also have a joint savings acc...