Questions from Individual Taxation

Q: Can C corporations use the cash method of accounting? Explain.

Can C corporations use the cash method of accounting? Explain.

Q: Are real property taxes subject to any deduction limitations? Explain.

Are real property taxes subject to any deduction limitations? Explain.

Q: Franco converted a building from personal to business use in May 2016

Franco converted a building from personal to business use in May 2016 when the fair market value was $55,000. He purchased the building in July 2013 for $80,000. On December 15 of this year, Franco se...

Q: Emily purchased a building to store inventory for her business. The

Emily purchased a building to store inventory for her business. The purchase price was $760,000. Emily also paid legal fees of $300 to acquire the building. In March, Emily incurred $2,000 to repair m...

Q: Longhaul Real Estate exchanged a parcel of land it held for sale

Longhaul Real Estate exchanged a parcel of land it held for sale in Bryan, Texas for a warehouse in College Station, Texas. Will the exchange qualify for like-kind treatment?

Q: Marissa participates in her employer’s nonqualified deferred compensation plan. For 2018

Marissa participates in her employer’s nonqualified deferred compensation plan. For 2018, she is deferring 10 percent of her $320,000 annual salary. Assuming this is her only source of income and her...

Q: Euro Corporation, a U.S. corporation, operates through

Euro Corporation, a U.S. corporation, operates through a branch in Germany. During 2018 the branch reported taxable income of $1,000,000 and paid German income taxes of $300,000. In addition, Euro rec...

Q: Paris participates in her employer’s nonqualified deferred compensation plan. For 2018

Paris participates in her employer’s nonqualified deferred compensation plan. For 2018, she is deferring 10 percent of her $320,000 annual salary. Assuming this is her only source of income and her ma...

Q: Seven years ago, Halle (currently age 41) contributed $

Seven years ago, Halle (currently age 41) contributed $4,000 to a Roth IRA account. The current value of the Roth IRA is $9,000. In the current, year Halle withdraws $8,000 of the account balance to u...

Q: Assuming adequate amounts of corporate E&P, what is the

Assuming adequate amounts of corporate E&P, what is the formula for determining the amount of a noncash distribution a shareholder must include in gross income?