Questions from Individual Taxation

Q: Orie and Jane, husband and wife, operate a sole proprietorship

Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. Orie and Jane are...

Q: Doug Jones submitted his 2018 tax return on time and elected to

Doug Jones submitted his 2018 tax return on time and elected to file a joint tax return with his wife, Darlene. Doug and Darlene did not request an extension for their 2018 tax return. Doug and Darlen...

Q: Lanny and Shirley divorced in 2018 and do not live together.

Lanny and Shirley divorced in 2018 and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $22,000 per year. All property was divided equally. a. How much should Shir...

Q: Describe the computation of the limit placed on the business interest deduction

Describe the computation of the limit placed on the business interest deduction. Is the disallowed interest ever deductible?

Q: This year, Major Healy paid $40,000 of interest

This year, Major Healy paid $40,000 of interest on a mortgage on his home (Major Healy borrowed $800,000 to buy the residence in 2015; $900,000 original purchase price and value at purchase), $6,000 o...

Q: Ray Ray made the following contributions this year. /

Ray Ray made the following contributions this year. Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assu...

Q: Dennis is currently considering investing in municipal bonds that earn 6 percent

Dennis is currently considering investing in municipal bonds that earn 6 percent interest, or in taxable bonds issued by the Coca-Cola Company that pay 8 percent. If Dennis’ tax rate is 22 percent, wh...

Q: In addition to cash contributions to charity, Dean decided to donate

In addition to cash contributions to charity, Dean decided to donate shares of stock and a portrait painted during the earlier part of the last century. Dean purchased the stock and portrait many year...

Q: Alan inherited $100,000 with the stipulation that he “

Alan inherited $100,000 with the stipulation that he “invest it to financially benefit his family.” Alan and Alice decided they would invest the inheritance to help them accomplish two financial goals...

Q: George bought the following amounts of Stock A over the years:

George bought the following amounts of Stock A over the years: Date Purchased Number of Shares Adjusted Basis  Stock A 11/21/1992 1,000 $24,000  Stock A 3/18/1998 500 9,000  Stock A ...