Questions from Individual Taxation

Q: A taxpayer stays in a second home for the entire month of

A taxpayer stays in a second home for the entire month of September. He would like the home to fall into the residence with significant rental use category for tax purposes. What is the maximum number...

Q: Compare and contrast the IRS method and the Tax Court method for

Compare and contrast the IRS method and the Tax Court method for allocating expenses between personal use and rental use for vacation homes. Include the Tax Court’s justification for departing from th...

Q: In what circumstances is the IRS method for allocating expenses between personal

In what circumstances is the IRS method for allocating expenses between personal use and rental use for vacation homes more beneficial to a taxpayer than the Tax Court method?

Q: Under what circumstances would a taxpayer who generates a loss from renting

Under what circumstances would a taxpayer who generates a loss from renting a home that is not a residence be able to fully deduct the loss? What potential limitations apply?

Q: Is it possible for a rental property to generate a positive annual

Is it possible for a rental property to generate a positive annual cash flow and at the same time produce a loss for tax purposes? Explain.

Q: Marathon Inc. (a C corporation) reported $1,

Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year it distributed $100,000 as dividends to its shareholders as follows: • $5,000 to Guy, a 5% in...

Q: A taxpayer purchases and lives in a home for a year.

A taxpayer purchases and lives in a home for a year. The home appreciates in value by $50,000. The taxpayer sells the home and purchases a new home. What information do you need to obtain to determine...

Q: Using the Web as a research tool, determine which countries levy

Using the Web as a research tool, determine which countries levy a double-tax on corporate income. Based on your research, what seem to be the pros and cons of the double-tax?

Q: Juanita owns a principal residence in New Jersey, a cabin in

Juanita owns a principal residence in New Jersey, a cabin in Montana, and a houseboat in Hawaii. All of these properties have mortgages on which Juanita pays interest. What limits, if any, apply to Ju...

Q: Lars and Leigha saved up for years before they purchased their dream

Lars and Leigha saved up for years before they purchased their dream home. They were considering (1) using all of their savings to make a large down payment on the home (90 percent of the value of the...