Questions from Individual Taxation

Q: If a person meets the qualifying relative tests for a taxpayer,

If a person meets the qualifying relative tests for a taxpayer, is that person automatically considered to be a dependent of the taxpayer?

Q: What are some of the common examples of the conversion strategy?

What are some of the common examples of the conversion strategy?

Q: Compare and contrast the different year-ends available to sole proprietorships

Compare and contrast the different year-ends available to sole proprietorships, flow-through entities, and C corporations.

Q: How do two taxpayers determine who has priority to claim a person

How do two taxpayers determine who has priority to claim a person as a dependent if the person is a qualifying child of both taxpayers when neither taxpayer is a parent of the child (assume the child...

Q: Describe what is meant by qualified business income for purposes of the

Describe what is meant by qualified business income for purposes of the deduction for qualified business income.

Q: Whether a business expense is “reasonable in amount” is often

Whether a business expense is “reasonable in amount” is often a difficult question. Explain why determining reasonableness is difficult and describe a circumstance where reasonableness is likely to be...

Q: Clem and Ida have been married for several years, but in

Clem and Ida have been married for several years, but in 2018 they finalized their divorce. In the divorce decree, Clem agreed to deed his car to Ida and pay Ida $10,000 per year for four years (but n...

Q: Under what circumstances would business income from an accounting practice qualify for

Under what circumstances would business income from an accounting practice qualify for the deduction for qualified business income?

Q: Don Juan, a single taxpayer, is the sole owner,

Don Juan, a single taxpayer, is the sole owner, of DJ’s Inc., an S Corporation. This year, DJ’s Inc. incurred a massive $600,000 business loss, all of which is allocable to Don Juan as the sole shareh...

Q: Jeremy earned $100,000 in salary and $6,

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,200 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qual...