Questions from Individual Taxation

Q: Adam Grisly, a single taxpayer, retired from a long career

Adam Grisly, a single taxpayer, retired from a long career in coal mining in 2017 when he was only 58 years of age. In 2018, his only source of income is wages of $17,500 from a part-time job. Adam kn...

Q: Donald, a wealthy banker, has a 24-year-

Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018, Junior generated wage income of $17,000. Junior is not a dependent of Donald and Junior’s 2018 tax l...

Q: Lamden Company paid its employee, Trudy, wages of $47

Lamden Company paid its employee, Trudy, wages of $47,000 in 2018. Calculate the FICA tax:

Q: Phan Mai is single with two dependent children under age 17.

Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year will be $42,000, her dependent care expenses will be $6,300, and her itemized deductions will be $14,...

Q: Drew Freeman operates a small business and his payroll records for the

Drew Freeman operates a small business and his payroll records for the first quarter of 2018 reflect the following: Drew’s employee identification number is 34-4321321 and his busi...

Q: Van makes an investment in a partnership in 2018. Van’s capital

Van makes an investment in a partnership in 2018. Van’s capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse li...

Q: Quince Interests is a partnership with a tax year that ends on

Quince Interests is a partnership with a tax year that ends on September 30, 2018. During that year, Potter, a partner, received $3,000 per month as a guaranteed payment, and his share of partnership...

Q: Go to the IRS website (www.irs.gov)

Go to the IRS website (www.irs.gov) and assuming bonus depreciation is used, redo Problem 11, using the most recent interactive Form 4562, Depreciation and Amortization. Print out the completed Form...

Q: Van makes an investment in an LLC in 2018. Van’s capital

Van makes an investment in an LLC in 2018. Van’s capital contributions to the LLC consisted of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller...

Q: Ralph and Kathy Gump are married with one 20-year-

Ralph and Kathy Gump are married with one 20-year-old dependent child. Ralph earns a total of $98,000 and estimates their itemized deductions to be $28,500 for the year. Kathy is not employed. Use For...