Questions from Individual Taxation

Q: Graber Corporation runs a long-haul trucking business. Graber incurs

Graber Corporation runs a long-haul trucking business. Graber incurs the following expenses: replacement tires, oil changes, and a transmission overhaul. Which of these expenditures may be deducted cu...

Q: MACRS depreciation requires the use of a recovery period, method,

MACRS depreciation requires the use of a recovery period, method, and convention to depreciate tangible personal property assets. Briefly explain why each is important to the calculation.

Q: Can a taxpayer with very little current year income choose to not

Can a taxpayer with very little current year income choose to not claim any depreciation expense for the current year and thus save depreciation deductions for the future when the taxpayer expects to...

Q: What depreciation methods are available for tangible personal property? Explain the

What depreciation methods are available for tangible personal property? Explain the characteristics of a business likely to adopt each method.

Q: If a business places several different assets in service during the year

If a business places several different assets in service during the year, must it use the same depreciation method for all assets? If not, what restrictions apply to the business’s choices of deprecia...

Q: On November 10 of year 1 Javier purchased a building, including

On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of...

Q: Carl purchased an apartment complex for $1.1 million on

Carl purchased an apartment complex for $1.1 million on March 17 of year 1. $300,000 of the purchase price was attributable to the land the complex sits on. He also installed new furniture into half o...

Q: AMP Corporation (calendar year end) has 2016 taxable income of

AMP Corporation (calendar year end) has 2016 taxable income of $900,000 before the §179 expense. During 2016, AMP acquired the following assets: a. What is the maximum amount of Â&se...

Q: Erin is considering switching her business from the cash method to the

Erin is considering switching her business from the cash method to the accrual method at the beginning of next year (year 1). Determine the amount and timing of her §481 adjustment assuming the IRS gr...

Q: Assume that TDW Corporation (calendar year end) has 2016 taxable

Assume that TDW Corporation (calendar year end) has 2016 taxable income of $650,000 before the §179 expenses, acquired the following assets during 2016: a. What is the maximum amount of &A...