Questions from Taxation

Q: Locate information on the procedure by which an individual taxpayer can request

Locate information on the procedure by which an individual taxpayer can request a photocopy of a prior year federal income tax return. What is the number of the form to request a photocopy? Does the I...

Q: Mr. and Mrs. Lear filed their 2016 Form 1040 on

Mr. and Mrs. Lear filed their 2016 Form 1040 on April 1, 2017. In November 2018, they received a notice of deficiency in which the IRS assessed $19,044 of additional 2016 income tax. Compute the total...

Q: Diane Bauman, a professional artist with AGI in excess of $

Diane Bauman, a professional artist with AGI in excess of $75,000, made the following donations. Determine to what extent each donation is deductible on her Schedule A. a. $2,000 cash to the First Met...

Q: Ms. Prince wants to create a scholarship in honor of her

Ms. Prince wants to create a scholarship in honor of her parents at the law school from which she received her degree. She could endow the scholarship with $500,000 cash or with $500,000 worth of mark...

Q: The IRS assessed a $32,800 income tax deficiency plus

The IRS assessed a $32,800 income tax deficiency plus $4,015 interest against Mr. and Mrs. Reczyk because of an alleged understatement of investment income. They refused to pay and took their case to...

Q: Mr. Tolen made the following interest payments. Determine the extent

Mr. Tolen made the following interest payments. Determine the extent to which he can deduct each payment on his Form 1040. a. $4,600 on credit card debt. b. $14,100 on a $210,000 mortgage secured by h...

Q: Mrs. Carr made the following interest payments. Determine the extent

Mrs. Carr made the following interest payments. Determine the extent to which she can deduct each payment on her Form 1040. a. $21,000 on a $280,000 mortgage incurred to construct (and secured by) her...

Q: Egolf Corporation failed to include $300,000 of taxable interest

Egolf Corporation failed to include $300,000 of taxable interest income on its 2017 calendar year Form 1120. The gross income reported on the return was $4.7 million, and the return was filed on Febru...

Q: Mr. Stanhope has an MBA degree from Stanford University and has

Mr. Stanhope has an MBA degree from Stanford University and has been in business for himself for 18 years. The revenue agent who audited his Form 1040 discovered a glaring error resulting in a $16,200...

Q: Mr. Monk is a self-employed computer consultant who earns

Mr. Monk is a self-employed computer consultant who earns more than $100,000 each year. He also is an enthusiastic artist. This year, he spent $4,900 on oil paints, canvasses, supplies, and lessons at...