Questions from Taxation

Q: Mr. Alm earned a $61,850 salary and recognized

Mr. Alm earned a $61,850 salary and recognized a $5,600 capital loss on the sale of corporate stock this year. Compute Mr. Alm’s AGI and any capital loss carry forward into future years in each of the...

Q: This year, Linda Moore earned a $112,000 salary

This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo certificate of deposit. She recognized a $15,300 capital loss on the sale of undeveloped land. Compute Linda’s A...

Q: Mr. and Mrs. Revel had $206,200 AGI

Mr. and Mrs. Revel had $206,200 AGI before considering capital gains and losses. For each of the following cases, compute their AGI: a. On May 8, they recognized a $8,900 short-term capital gain. On J...

Q: Refer to the preceding problem. Determine which of the four cases

Refer to the preceding problem. Determine which of the four cases results in a capital loss carry forward for Mr. and Mrs. Revel. What is the amount and character of each carry forward? Data from Pro...

Q: Mr. Fox, a single taxpayer, recognized a $64

Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Fox’s income tax and Medicare contribution...

Q: Mrs. Cox, a head of household, earned a $

Mrs. Cox, a head of household, earned a $313,000 salary and recognized a $29,300 net long-term capital gain this year. Compute the income tax on the gain if: a. None of the gain is collectibles gain o...

Q: Mr. and Mrs. Scoler sold commercial real estate for $

Mr. and Mrs. Scoler sold commercial real estate for $685,000. Their adjusted basis at date of sale was $544,700 ($596,600 cost − $51,900 straight-line accumulated depreciation). Compute the Scolers’ i...

Q: Mr. G has $15,000 to invest. He

Mr. G has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 3.5 percent annual interest or corporate bonds paying 4.75 percent annual interest. The two...

Q: Mr. Scott sold rental real estate that had a $186

Mr. Scott sold rental real estate that had a $186,200 adjusted basis ($200,000 million cost − $13,800 straight-line accumulated depreciation). The sales price was $210,000. This was his only property...

Q: Diane Stacy, who has a 32 percent marginal tax rate on

Diane Stacy, who has a 32 percent marginal tax rate on ordinary income and a 3.8 percent Medicare contribution tax rate on investment income, owns 13,800 shares in Tobler Mutual Fund. This year, she r...