Questions from Individual Taxation

Q: Brittany started a law practice as a sole proprietor. She owned

Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her busin...

Q: Sarah (single) purchased a home on January 1, 2008

Sarah (single) purchased a home on January 1, 2008 for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following a...

Q: Troy (single) purchased a home in Hopkinton, Massachusetts,

Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007 for $300,000. He sold the home on January 1, 2018 for $320,000. How much gain must Troy recognize on his home sale in eac...

Q: Hart, an individual, bought an asset for $500,

Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in t...

Q: At the beginning of the year, Poplock began a calendar-

At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s Palace. Poplock bought and placed in service the following assets during the year: Asset Date Acquire...

Q: Buckley, an individual, began a business two years ago and

Buckley, an individual, began a business two years ago and has never sold a §1231 asset. Buckley owned each of the assets since he began the business. In the current year, Buckley sold the following b...

Q: What is the qualified business income deduction and how does it affect

What is the qualified business income deduction and how does it affect the tax rate on flow-through entity income?

Q: At the beginning of the year, Dee began a calendar-

At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year: Asset Date Acquired Cost Basis  Computer equipment 3/23 $5,000  F...

Q: Lily Tucker (single) owns and operates a bike shop as

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Sales Price Cost Accumulated Depreciation  ...

Q: Way Corporation disposed of the following tangible personal property assets in the

Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2018 depreciation dedu...