Questions from Individual Taxation

Q: During 2016, your clients, Mr. and Mrs. Howell

During 2016, your clients, Mr. and Mrs. Howell, owned the following investment assets: a. Go to the IRS web site (www.IRS.gov) and download the most current version of Form 8949 and Schedule D. Use Fo...

Q: Compare and contrast the tax treatment of dividend-paying stocks and

Compare and contrast the tax treatment of dividend-paying stocks and growth stocks.

Q: Baker paid $775 for the preparation of his tax return and

Baker paid $775 for the preparation of his tax return and incurred $375 of employee business expenses of which $60 was reimbursed by his employer through an accountable plan. Baker also paid a $100 f...

Q: What is the definition of a capital asset? Give three examples

What is the definition of a capital asset? Give three examples of capital assets.

Q: Why does the tax law allow a taxpayer to defer gains accrued

Why does the tax law allow a taxpayer to defer gains accrued on a capital asset until the taxpayer actually sells the asset?

Q: Why does the tax law provide preferential rates on certain capital gains

Why does the tax law provide preferential rates on certain capital gains?

Q: What is the deciding factor in determining whether a capital gain is

What is the deciding factor in determining whether a capital gain is a short-term or long-term capital gain?

Q: What methods may taxpayers use to determine the adjusted basis of stock

What methods may taxpayers use to determine the adjusted basis of stock they have sold?

Q: Are all long-term capital gains taxable at the same maximum

Are all long-term capital gains taxable at the same maximum rate? If not, what rates may apply to long-term capital gains?

Q: This year, David, a taxpayer in the highest tax rate

This year, David, a taxpayer in the highest tax rate bracket, has the option to purchase either stock in a Fortune 500 company or qualified small business stock in his friend’s corporation. All else e...