Questions from Individual Taxation

Q: Assume Natalie uses the IRS method of allocating expenses to rental use

Assume Natalie uses the IRS method of allocating expenses to rental use of the property. a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related to th...

Q: Assume Natalie uses the Tax Court method of allocating expenses to rental

Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. a. What is the total amount of for AGI (rental) deductions Natalie may deduct in the current year related...

Q: Assume Alexa receives $30,000 in gross rental receipts.

Assume Alexa receives $30,000 in gross rental receipts. a. What effect do the expenses associated with the property have on her AGI? b. What effect do the expenses associated with the property have o...

Q: Assuming Alexa receives $20,000 in gross rental receipts,

Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions: a. What effect does the rental activity have on her AGI for the year? b. Assuming that Alexa’s AGI from other...

Q: Assume that in addition to renting the condo for 100 days,

Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts. Answer the following quest...

Q: Brooke owns a sole proprietorship in which she works as a management

Brooke owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks...

Q: Assume Rita’s consulting business generated $15,000 in gross income

Assume Rita’s consulting business generated $15,000 in gross income. a. What is Rita’s home office deduction for the current year? b. What would Rita’s home office deduction for the current year be...

Q: Assume Rita’s consulting business generated $13,000 in gross income

Assume Rita’s consulting business generated $13,000 in gross income for the current year. Further, assume Rita uses the actual expense method for computing her home office expense deduction. a. What...

Q: Alisha, who is single, owns a sole proprietorship in which

Alisha, who is single, owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other wo...

Q: A self-employed taxpayer deducts home office expenses, including depreciation

A self-employed taxpayer deducts home office expenses, including depreciation expense. The taxpayer then sells the home at a $100,000 gain. Assuming the taxpayer meets the ownership and use tests, doe...