Questions from Individual Taxation

Q: Woolard Supplies (a sole proprietorship) has taxable income in 2018

Woolard Supplies (a sole proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year...

Q: Assume that Sivart Corporation has 2018 taxable income of $1,

Assume that Sivart Corporation has 2018 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. The delivery truck was acquired in a nontax...

Q: Acorn Construction (calendar-year end C-corporation) has

Acorn Construction (calendar-year end C-corporation) has had rapid expansion during the last half of the current year due to the housing market’s recovery. The company has record income and would like...

Q: Hans runs a sole proprietorship. Hans has reported the following net

Hans runs a sole proprietorship. Hans has reported the following net §1231 gains and losses since he began business. Net §1231 gains shown are before the lookback rule. Year Net §1231 Gains/(Losses)...

Q: Assume that Ernesto purchased a digital camera on July 10 of year

Assume that Ernesto purchased a digital camera on July 10 of year 1 for $3,000. In year 1, 80 percent of his camera usage was for his business and 20 percent was for his personal photography activitie...

Q: Lina purchased a new car for use in her business during 2018

Lina purchased a new car for use in her business during 2018. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum deprec...

Q: Tater Meer purchased a new car for use in her business during

Tater Meer purchased a new car for use in her business during 2018 for $75,000. The auto was the only business asset she purchased during the year and her business was very profitable. Calculate Tater...

Q: Alicia has been working for JMM Corp. for 32 years.

Alicia has been working for JMM Corp. for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average sala...

Q: A taxpayer sells a piece of real property in year 1.

A taxpayer sells a piece of real property in year 1. The amount of year 1 real property taxes is estimated at the closing of the sale and the amounts are allocated between the buyer and the taxpayer....

Q: Sarah was contemplating making a contribution to her traditional individual retirement account

Sarah was contemplating making a contribution to her traditional individual retirement account for 2018. She determined that she would contribute $5,500 to her IRA and she deducted $5,500 for the cont...