Questions from Individual Taxation

Q: Roquan is an attorney and practices as a sole proprietor. This

Roquan is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice. Assume that Roquan pays $40,000 wages to his employees, he has $10...

Q: Katie is a shareholder in Engineers One, a civil engineering company

Katie is a shareholder in Engineers One, a civil engineering company. This year, Katie’s share of net business income from Engineers One is $200,000. Assume that Katie’s allocation of wages paid by En...

Q: Matt recently deposited $20,000 in a savings account paying

Matt recently deposited $20,000 in a savings account paying a guaranteed interest rate of 4 percent for the next 10 years. If Matt expects his marginal tax rate to be 22 percent for the next 10 years,...

Q: Dana intends to invest $30,000 in either a Treasury

Dana intends to invest $30,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. Assuming Dana’s federal...

Q: Hayley recently invested $50,000 in a public utility stock

Hayley recently invested $50,000 in a public utility stock paying a 3 percent annual dividend. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will...

Q: John bought 1,000 shares of Intel stock on October 18

John bought 1,000 shares of Intel stock on October 18, 2014 for $30 per share plus a $750 commission he paid to his broker. On December 12, 2018, he sells the shares for $42.50 per share. He also incu...

Q: Dahlia is in the 32 percent tax rate bracket and has purchased

Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Microsoft common stock  Date Purchased Shares Basis  7/10/2008 400...

Q: Matt and Lori were divorced in 2016. Pursuant to the divorce

Matt and Lori were divorced in 2016. Pursuant to the divorce decree Matt receives $10,000 of alimony each month. Use an available tax service to determine if the alimony Matt receives is taxable. Woul...

Q: Matt and Meg Comer are married and file a joint tax return

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at...

Q: Grayson is in the 24 percent tax rate bracket and has the

Grayson is in the 24 percent tax rate bracket and has the sold the following stocks in 2018: Date Purchased Basis Date Sold Amount Realized  Stock A 1/23/1994 $7,250 7/22/2018 $4,500  St...