Questions from Individual Taxation

Q: Nicoula is a server at a La Jolla restaurant. Nicoula received

Nicoula is a server at a La Jolla restaurant. Nicoula received $1,200 in unreported tips during 2018 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including...

Q: Answer the following questions: a. Under a 2017 divorce

Answer the following questions: a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until their daughter is 18 years of age. At that time, the required paymen...

Q: Arlen is required by his 2018 divorce agreement to pay alimony of

Arlen is required by his 2018 divorce agreement to pay alimony of $2,000 a month and child support of $2,000 a month to his ex-wife Jane. What is the tax treatment of these two payments for Arlen? Wha...

Q: Charu Khanna received a Form 1099-B showing the following stock

Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2018: None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calc...

Q: Jose paid the following amounts for his son to attend Big State

Jose paid the following amounts for his son to attend Big State University in 2018: How much of the above is a qualified higher education expense for purposes of his Qualified Tuition Program?

Q: In 2018, Van receives $20,000 (of which

In 2018, Van receives $20,000 (of which $4,000 is earnings) from a qualified tuition program. He uses the funds to pay for his college tuition and other qualified higher education expenses. How much o...

Q: During the 2018 tax year, Brian, a single taxpayer,

During the 2018 tax year, Brian, a single taxpayer, received $7,400 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he...

Q: In 2018, Lou has a salary of $53,300

In 2018, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $400. Lou is single and has no dependents. During the year, Lou sold silver coins held...

Q: Indicate the date that the statute of limitations would run out on

Indicate the date that the statute of limitations would run out on each of the following 2018 individual tax returns: a. A fraudulent tax return that was filed April 15, 2019 b. A tax return that was...

Q: Business with gross receipts of $25 million or less may treat

Business with gross receipts of $25 million or less may treat inventory as non incidental materials and supplies. Find Regulation Section 1.162-3 and read paragraphs (a)(1) and (a)(2) to help answer t...