Questions from Individual Taxation

Q: In 2018, Michael has net short-term capital losses of

In 2018, Michael has net short-term capital losses of $1,500, a net long-term capital loss of $27,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael’s deduction for...

Q: Larry Gaines, a single taxpayer, age 42, sells his

Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2018, for $148,000. He lived in the house for 7 years. The expenses of the sale are $9,000, and he has made capita...

Q: On July 1, 2018, Ted, age 73 and single

On July 1, 2018, Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted’s basis in his residence is $42,000. The expenses associated with the sale of his home tota...

Q: Dick owns a house that he rents to college students. Dick

Dick owns a house that he rents to college students. Dick receives $800 per month rent and incurs the following expenses during the year: Dick purchased the house in 1978 for $48,000. The house...

Q: Evan participates in an HSA carrying family coverage for himself, his

Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has $100 per month deducted from his paycheck and contributed to the HSA. In addition, Eva...

Q: Rob operates a small plumbing supplies business as a sole proprietor.

Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $5...

Q: Lyndon’s employer withheld $11,000 in state income taxes from

Lyndon’s employer withheld $11,000 in state income taxes from Lyndon’s wages in 2018. Lyndon obtained a refund of $1,700 this year for overpayment of state income taxes for 2017. State income taxes we...

Q: Mike sells his home to Jane on April 2, 2018.

Mike sells his home to Jane on April 2, 2018. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property taxes...

Q: Mary paid $2,000 of state income taxes in 2018

Mary paid $2,000 of state income taxes in 2018. The total sales tax she paid during 2018 was $4,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2018 t...

Q: Caloundra Corporation has book income of $40,000. Included

Caloundra Corporation has book income of $40,000. Included in the book income is $3,000 of tax-exempt interest, $7,000 of book income tax expense, and a $2,000 nondeductible fine. Also included in boo...