Questions from Individual Taxation

Q: Penny, a full-time biochemist, loves stock car racing

Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt-track car and has started entering some local dirt-track races. The prize money is pretty small ($1,0...

Q: What is the general rule for how many authorities a research memo

What is the general rule for how many authorities a research memo should discuss?

Q: Five years ago, Kate purchased a dividend-paying stock for

Five years ago, Kate purchased a dividend-paying stock for $10,000. For all five years, the stock paid an annual dividend of 4 percent before tax and Kate’s marginal tax rate was 24 percent. Every yea...

Q: Michelle operates a food truck. Indicate the amount (if any

Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deductions in each of the following situations and explain your solution. a) Mic...

Q: Simon lost $5,000 gambling this year on a trip

Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his broker for managing his $200,000 portfolio, and $1,500 to his accountant for preparing his tax return. I...

Q: What is the kiddie tax? Explain.

What is the kiddie tax? Explain.

Q: Tammy teaches elementary school history for the Metro School District. In

Tammy teaches elementary school history for the Metro School District. In 2018 she has incurred the following expenses associated with her job: Noncredit correspondence course on history ………………….$ 90...

Q: Christopher is a cash-method, calendar-year taxpayer,

Christopher is a cash-method, calendar-year taxpayer, and he made the following cash payments related to his business this year. Calculate the after-tax cost of each payment assuming Christopher has a...

Q: Using an available tax service or the Internet, identify three basic

Using an available tax service or the Internet, identify three basic tax planning ideas or tax tips suggested for year-end tax planning. Which basic tax strategy from this chapter does each planning i...

Q: Benjamin, a self-employed bookkeeper, takes a CPA review

Benjamin, a self-employed bookkeeper, takes a CPA review course ($1,500 cost) to help prepare for the CPA exam. a. Use an available tax research service to determine if Benjamin may deduct the cost of...