Questions from Individual Taxation

Q: In January of year 0, Justin paid $4,800

In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounti...

Q: Describe, in general terms, why Congress implemented the AMT.

Describe, in general terms, why Congress implemented the AMT.

Q: Brown Thumb Landscaping is a calendar-year, accrual-method

Brown Thumb Landscaping is a calendar-year, accrual-method taxpayer. In September, Brown Thumb negotiated a $14,000 contract for services it would provide to the city in November of the current year....

Q: The starting point for computing alternative minimum taxable income is regular taxable

The starting point for computing alternative minimum taxable income is regular taxable income. What are some of the plus adjustments, plus or minus adjustments, and minus adjustments to regular taxabl...

Q: Describe what the AMT exemption is and who is and isn’t allowed

Describe what the AMT exemption is and who is and isn’t allowed to deduct the exemption. How is it similar to the standard deduction and how is it dissimilar?

Q: How do the AMT tax rates compare to the regular income tax

How do the AMT tax rates compare to the regular income tax rates?

Q: Is it possible for a taxpayer who pays AMT to have a

Is it possible for a taxpayer who pays AMT to have a marginal tax rate higher than the stated AMT rate? Explain.

Q: Lee is single and he runs his own business. He uses

Lee is single and he runs his own business. He uses the cash method of accounting to determine his business income. Near the end of the year, Lee performed work that he needs to bill a client for. The...

Q: Are an employee’s entire wages subject to the FICA tax? Explain

Are an employee’s entire wages subject to the FICA tax? Explain.

Q: Bobbie works as an employee for Altron Corp. for the first

Bobbie works as an employee for Altron Corp. for the first half of the year and for Betel Inc. for rest of the year. She is relatively well paid. What FICA tax issues is she likely to encounter? What...