Questions from Individual Taxation

Q: There are two recovery period classifications for real property. What reasons

There are two recovery period classifications for real property. What reasons might Congress have to allow residential real estate a shorter recovery period than nonresidential real property?

Q: Discuss why Congress has instructed taxpayers that real property be depreciated using

Discuss why Congress has instructed taxpayers that real property be depreciated using the mid-month convention as opposed to the half-year or mid-quarter conventions used for tangible personal propert...

Q: If a taxpayer has owned a building for 10 years and decides

If a taxpayer has owned a building for 10 years and decides that it should make significant improvements to the building, what is the recovery period for the improvements?

Q: Compare and contrast the differences between computing depreciation expense for tangible personal

Compare and contrast the differences between computing depreciation expense for tangible personal property and depreciation expense for real property under both the regular tax and alternative tax sys...

Q: Discuss why a small business might be able to deduct a greater

Discuss why a small business might be able to deduct a greater percentage of the assets it places in service during the year than a larger business.

Q: This year William provided $4,200 of services to a

This year William provided $4,200 of services to a large client on credit. Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the service...

Q: Explain the two limitations placed on the §179 deduction. How

Explain the two limitations placed on the §179 deduction. How are they similar? How are they different?

Q: Compare and contrast the types of businesses that would benefit from and

Compare and contrast the types of businesses that would benefit from and those that would not benefit from the §179 expense.

Q: What strategies will help a business maximize its current depreciation deductions (

What strategies will help a business maximize its current depreciation deductions (including §179)? Why might a taxpayer choose not to maximize its current depreciation deductions?

Q: Why might a business elect only the §179 expense it can

Why might a business elect only the §179 expense it can deduct in the current year rather than claiming the full amount available?