Questions from Taxation

Q: Mr. Garza earned an $85,000 salary and recognized

Mr. Garza earned an $85,000 salary and recognized a $12,000 loss on a security sale and a $14,000 gain on the sale of a limited partnership interest. His share of the partnership’s business income thr...

Q: Boyd Salzer, an unmarried individual, has $212,950

Boyd Salzer, an unmarried individual, has $212,950 AGI consisting of the following items. Salary …………………………………………………….$188,000 Interest income …………………………………………..2,900 Dividend income ………………………………………...

Q: Mr. Erwin’s marginal tax rate on ordinary income is 37 percent

Mr. Erwin’s marginal tax rate on ordinary income is 37 percent. His $958,000 AGI included a $24,900 net long-term capital gain and $37,600 business income from a passive activity. a. Compute Mr. Erwin...

Q: Mr. Ito, an unmarried individual, made a gift of

Mr. Ito, an unmarried individual, made a gift of real estate to his son. Compute the amount subject to federal gift tax in each of the following situations: a. The FMV of the real estate was $4.75 mil...

Q: Mr. Jackson died on June 19 when the total FMV of

Mr. Jackson died on June 19 when the total FMV of his property was $23 million and his debts totaled $2.789 million. His executor paid $23,000 funeral expenses and $172,000 accounting and legal fees t...

Q: Mrs. Turner died this year at age 83. On the

Mrs. Turner died this year at age 83. On the date of death, the FMV of Mrs. Turner’s property was $46.3 million, and she owed $2.491 million to various creditors. The executor of her estate paid $17,8...

Q: Mrs. Wolter, an unmarried individual, owns investment land with

Mrs. Wolter, an unmarried individual, owns investment land with a $138,000 basis, a nine year holding period, and a $200,000 FMV. Compute the after-tax (income tax and Medicare contribution tax) sale...

Q: Mrs. Yue, a resident of Virginia, paid $50

Mrs. Yue, a resident of Virginia, paid $50,000 for a bond issued by Pennsylvania that paid $3,400 interest this year. Her marginal state income tax rate is 6 percent. Under Virginia law, interest on d...

Q: Ms. Pay, who has a 40.8 percent marginal

Ms. Pay, who has a 40.8 percent marginal tax rate on interest income (37 percent income tax + 3.8 percent Medicare contribution tax), owns HHL Inc. corporate bonds in her investment portfolio. She ear...

Q: Ms. JK recently made a gift to her 19-year

Ms. JK recently made a gift to her 19-year-old daughter, Alison. Ms. JK’s marginal income tax rate is 37 percent, and Alison’s marginal income tax rate is 12 percent. In each of the following cases, c...