Questions from Taxation

Q: Bert Baker and Ernestine Moffet were never formally married but have lived

Bert Baker and Ernestine Moffet were never formally married but have lived together as husband and wife for the last 14 years. Bert and Ernestine reside in Washington, D.C., a jurisdiction that recogn...

Q: Tim Loker is the five-year-old godson of Mr

Tim Loker is the five-year-old godson of Mr. and Mrs. Bryant. Tim’s parents died in an accident on December 18 of last year. Tim was seriously injured in the accident and remained hospitalized until A...

Q: Curtis Bedford, age 73, is a professor of English at

Curtis Bedford, age 73, is a professor of English at a private university. He holds a tenured position, which represents a lifetime employment contract. The university has offered Curtis a $75,000 lum...

Q: Marion Kline was recently elected mayor of a large mid western city

Marion Kline was recently elected mayor of a large mid western city that furnishes its mayor with an official residence for occupancy during the term of office. The residence (house and gardens) is ow...

Q: Helene Toolson, age 67, is an avid collector of historical

Helene Toolson, age 67, is an avid collector of historical documents and signatures. Her collection is worth more than $300,000 and, by any measure, is an excellent investment. Helene also owns an IRA...

Q: Early this year, Scott Lowe, age 54, became dissatisfied

Early this year, Scott Lowe, age 54, became dissatisfied with the service he was receiving from the broker who managed his traditional IRA. He requested a distribution of the $48,200 balance in the ac...

Q: Mrs. Evelyn Baker sued her stockbroker for mismanagement of her account

Mrs. Evelyn Baker sued her stockbroker for mismanagement of her account. The broker ultimately settled the case by paying her $250,000. The payment represented the loss in value of Mrs. Baker’s stock...

Q: Todd Zimler, who files a joint income tax return with his

Todd Zimler, who files a joint income tax return with his wife, Stella, owns 85 percent of the outstanding stock of Zimler Manufacturing. In January of last year, Todd transferred a tract of investmen...

Q: Rachel Sanchez is a limited partner in HN Partnership, which operates

Rachel Sanchez is a limited partner in HN Partnership, which operates a souvenir shop, and a member in Jams-n-Jellies LLC, which makes specialty food items and sells them at retail. Rachel has no invo...

Q: Visit the website for the Congressional Budget Office (www.cbo

Visit the website for the Congressional Budget Office (www.cbo.gov), follow the link to Budget and Economic Information, and look up the most current Monthly Budget Review. What is the CBO’s estimate...