Questions from Individual Taxation

Q: For tax purposes, does a residence need to be situated at

For tax purposes, does a residence need to be situated at a fixed location? Explain.

Q: What risks do employees making an 83(b) election on

What risks do employees making an 83(b) election on a restricted stock grant assume?

Q: On January 1 of 2018, Jason and Jill Marsh acquired a

On January 1 of 2018, Jason and Jill Marsh acquired a home for $500,000 by paying $400,000 down and borrowing $100,000 with a 7 percent loan secured by the home. On January 1, 2019, the Marshes needed...

Q: Peter and Shaline Johnsen moved into a home in a new subdivision

Peter and Shaline Johnsen moved into a home in a new subdivision. Theirs was one of the first homes in the subdivision. During the year, they paid $1,500 in real property taxes on the home to the stat...

Q: Jesse Brimhall is single. In 2018, his itemized deductions were

Jesse Brimhall is single. In 2018, his itemized deductions were $9,000 before considering any real property taxes he paid during the year. Jesse’s adjusted gross income was $70,000 (also before consid...

Q: Andrea would like to organize SHO as either an LLC (taxed

Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 11 percent annual before-tax return on a $...

Q: Jacob is a member of WCC (an LLC taxed as a

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $100,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation...

Q: Amanda would like to organize BAL as either an LLC (taxed

Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $5...

Q: Amanda would like to organize BAL as either an LLC (taxed

Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $5...

Q: Marathon Inc. (a C corporation) reported $1,

Marathon Inc. (a C corporation) reported $1,000,000 of taxable income in the current year. During the year it distributed $100,000 as dividends to its shareholders as follows: • $5,000 to Guy, a 5% in...