Questions from Individual Taxation

Q: David and Lilly Fernandez have determined their tax liability on their joint

David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,700. They have made prepayments of $1,500 and also have a child tax credit of $2,000. What is the amoun...

Q: Discuss the treatment of suspended passive losses upon the sale of a

Discuss the treatment of suspended passive losses upon the sale of a passive activity?

Q: Jack operates a plumbing business as a sole proprietorship and uses the

Jack operates a plumbing business as a sole proprietorship and uses the cash method. Besides providing plumbing services, Jack also sells plumbing supplies to homeowners and other plumbers. The sales...

Q: All else being equal, would a taxpayer with passive losses prefer

All else being equal, would a taxpayer with passive losses prefer to have wage income or passive income?

Q: Rank the following three single taxpayers in order of the magnitude of

Rank the following three single taxpayers in order of the magnitude of taxable income (from lowest to highest) and explain your results.

Q: Aishwarya’s husband passed away in 2017. She needs to determine whether

Aishwarya’s husband passed away in 2017. She needs to determine whether Jasmine, her 17-year-old stepdaughter who is single, qualifies as her dependent in 2018. Jasmine is a resident but not a citizen...

Q: Explain how cost of goods sold is treated when a business sells

Explain how cost of goods sold is treated when a business sells inventory.

Q: Betty operates a beauty salon as a sole proprietorship. Betty also

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. Determine Betty’s AGI...

Q: This year Jack intends to file a married-joint return.

This year Jack intends to file a married-joint return. Jack received $167,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This...

Q: In each of the following independent cases, indicate the amount (

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limita...