Questions from Individual Taxation

Q: Carey exchanges land for other land in a qualifying like-kind

Carey exchanges land for other land in a qualifying like-kind exchange. Carey’s basis in the land given up is $115,000, and the property has a fair market value of $150,000. In exchange for her proper...

Q: Mike purchases a new heavy-duty truck (5-year

Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passeng...

Q: On March 8, 2019, Holly purchased a residential apartment building

On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on Oc...

Q: Calculate the following: a. The first year of depreciation

Calculate the following: a. The first year of depreciation on a residential rental building costing $250,000 purchased June 2, 2019. b. The second year (2020) of depreciation on a computer costing $5...

Q: Christopher Crosphit (birthdate April 28, 1977) owns and operates

Christopher Crosphit (birthdate April 28, 1977) owns and operates a health club called “Catawba Fitness.” The business is located at 4321 New Cut Road, Spartanburg,...

Q: During 2019, William purchases the following capital assets for use in

During 2019, William purchases the following capital assets for use in his catering business: Assume that William decides to use the election to expense on the baking equipment (and has adequate taxab...

Q: On February 2, 2019, Alexandra purchases a personal computer.

On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra uses the computer 85 percent of the time in her accounting business, and the remaining 15 percent of t...

Q: Phan Mai is single with two dependent children under age 17.

Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year will be $42,000 and her itemized deductions will be $14,000. In the previous year, Phan had a small t...

Q: Drew Freeman operates a small business and his payroll records for the

Drew Freeman operates a small business and his payroll records for the first quarter f 2019 reflect the following: Drew’s employee identification number is 34-4321321 and his busines...

Q: Philcon Corporation created the following 2019 employee payroll report for one of

Philcon Corporation created the following 2019 employee payroll report for one of its employees. a. Complete the following Form W-2 for Louise Chugach from Philcon Corporation. b. Philcon Corporation...