Questions from Individual Taxation

Q: L. A. and Paula file as married taxpayers. In

L. A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula inc...

Q: Clyde is a cash method taxpayer who reports on a calendar-

Clyde is a cash method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in hi...

Q: Ralph owns a building that he is trying to lease. Ralph

Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements. Under lease 1, th...

Q: Jeremy and Alyssa Johnson have been married for five years and do

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his...

Q: Shauna Coleman is single. She is employed as an architectural designer

Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income. She correctly calculated her AGI. However, she wasn...

Q: Joe and Jessie are married and have one dependent child, Lizzie

Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft...

Q: Clem and Ida have been married for several years, but this

Clem and Ida have been married for several years, but this year they decided to get divorced. In the divorce decree, Clem agreed to deed his car to Ida and pay Ida $10,000 per year for four years. Wil...

Q: This year Evan graduated from college, and took a job as

This year Evan graduated from college, and took a job as a deliveryman in the city. Evan was paid a salary of $68,500 and he received $700 in hourly pay for part-time work over the weekends. Evan su...

Q: Read the following letter and help Shady Slim with his tax situation

Read the following letter and help Shady Slim with his tax situation. Please assume that gross income is $172,900 (which consists only of salary) for purposes of this problem.

Q: What types of taxes qualify to be deducted as itemized deductions?

What types of taxes qualify to be deducted as itemized deductions? Would a vehicle registration fee qualify as a deductible tax?