Questions from Individual Taxation

Q: Kristen, a single taxpayer, receives two 2018 Forms W-

Kristen, a single taxpayer, receives two 2018 Forms W-2 from the two employers she worked for during the year. One Form W-2 lists her wages in Boxes 1, 3, and 5 as $18,700. Her other employer’s Form W...

Q: Ulysses and Penelope are married and file separate returns for 2018.

Ulysses and Penelope are married and file separate returns for 2018. Penelope itemizes her deductions on her return. Ulysses’ adjusted gross income was $17,400, his itemized deductions were $2,250. Ne...

Q: Linda and Richard are married and file a joint return for 2018

Linda and Richard are married and file a joint return for 2018. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; R...

Q: Scott Butterfield is self-employed as a CPA. He uses

Scott Butterfield is self-employed as a CPA. He uses the cash method of account ing, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott’s CPA...

Q: How much of each of the following is taxable? a

How much of each of the following is taxable? a. Cheline, an actress, received a $6,400 gift bag for attending the Academy Awards Ceremony during 2018. b. Jon received a gold watch worth $660 for 25 y...

Q: While preparing Massie Miller’s 2018 Schedule A, you review the following

While preparing Massie Miller’s 2018 Schedule A, you review the following list of possible charitable deductions provided by Massie: What would you say to Massie regarding her list...

Q: For each of the following independent cases, indicate the amount of

For each of the following independent cases, indicate the amount of gross income that must be included on the taxpayer’s 2018 income tax return. a. Malchia won a $4,000 humanitarian award. b. Rob won...

Q: Marty is a sales consultant. Marty incurs the following expenses related

Marty is a sales consultant. Marty incurs the following expenses related to the entertainment of his clients in 2018: a. How much is Marty’s deduction for entertainment expenses fo...

Q: Determine from the tax table in Appendix A the amount of the

Determine from the tax table in Appendix A the amount of the income tax for each of the following taxpayers for 2018:

Q: Carey opens a law office in Chicago on January 1, 2018

Carey opens a law office in Chicago on January 1, 2018. On January 1, 2018, Carey purchases an annual subscription to a law journal for $170 and a 1-year legal reference service for $1,500. Carey als...