Questions from Individual Taxation

Q: Explain why the medical expense provisions are sometimes referred to as “

Explain why the medical expense provisions are sometimes referred to as “wherewithal” deductions and how this rationale is reflected in the limit on these deductions.

Q: Ken is 63 years old and unmarried. He retired at age

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information t...

Q: Consider the following letter and answer Shady’s question. To my

Consider the following letter and answer Shady’s question. To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the y...

Q: Diana and Ryan Workman were married on January 1 of last year

Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a...

Q: For 2018, Sherri has a short-term loss of $

For 2018, Sherri has a short-term loss of $2,500 and a long-term loss of $4,750. a. How much loss can Sherri deduct in 2018? b. How much loss will Sherri carryover to 2019 and what is the character of...

Q: Christopher sold 100 shares of Cisco stock for $5,500

Christopher sold 100 shares of Cisco stock for $5,500 in the current year. He purchased the shares several years ago for $2,200. Assuming his marginal ordinary income tax rate is 24 percent, and he ha...

Q: Shaun bought 300 shares of Dental Equipment, Inc. several years

Shaun bought 300 shares of Dental Equipment, Inc. several years ago for $10,000. Currently the stock is worth $8,000. Shaun’s marginal tax rate this year is 24 percent, and he has no other capital gai...

Q: On January 1 of year 1, Nick and Rachel Sutton purchased

On January 1 of year 1, Nick and Rachel Sutton purchased a parcel of undeveloped land as an investment. The purchase price of the land was $150,000. They paid for the property by making a down payment...

Q: George recently received a great stock tip from his friend, Mason

George recently received a great stock tip from his friend, Mason. George didn’t have any cash on hand to invest, so he decided to take out a $20,000 loan to facilitate the stock acquisition. The loan...

Q: In 2018, Jack is single two children, ages 10 and

In 2018, Jack is single two children, ages 10 and 12. Jack works full-time and earns an annual salary of $195,000 as a consultant.. Jack files as a head of household and does not itemize his deduction...