Questions from Taxation

Q: Mr. JY, a commercial artist, engaged Mr. DE

Mr. JY, a commercial artist, engaged Mr. DE, a local attorney, to prepare his income tax return. Mr. JY provided the attorney with his check register, deposit slips, receipts, and pertinent financial...

Q: Discuss the similarities and differences in the structure of the gambling loss

Discuss the similarities and differences in the structure of the gambling loss rule and the vacation home rule.

Q: Mrs. QE has decided to contest a $28,650

Mrs. QE has decided to contest a $28,650 tax deficiency. She understands that she can initiate the litigation in district court or the Tax Court. Identify any reasons why she might prefer one trial co...

Q: Buddy Bushey is a student at a local community college. This

Buddy Bushey is a student at a local community college. This year, he received a $20,000 living allowance from his parents and an $11,500 academic scholarship from a civic club. This scholarship paid...

Q: Historically, about 1 percent of Form 1040s are audited. Why

Historically, about 1 percent of Form 1040s are audited. Why does a Form 1040 reflecting $31,000 AGI and a standard deduction have much less than a 1 percent chance, while a Form 1040 reflecting $912,...

Q: Contrast the general rule concerning the recognition of gross income from personal

Contrast the general rule concerning the recognition of gross income from personal activities with the general rule concerning the deductibility of personal expenses and losses.

Q: Eighteen months ago, Barry Shelton won a $2 million Maryland

Eighteen months ago, Barry Shelton won a $2 million Maryland state lottery jackpot and chose to receive it as $120,000 annual annuity for the rest of his life. This year his brothers persuaded him to...

Q: Mr. and Mrs. Lukert own a sole proprietorship and have

Mr. and Mrs. Lukert own a sole proprietorship and have no other source of income. This year, they paid $11,674 Massachusetts income tax, all of which is attributable to their business profit. Can they...

Q: Betsy and Larry Lorch own and reside in an apartment in midtown

Betsy and Larry Lorch own and reside in an apartment in midtown Manhattan. They left the city to avoid the uproar surrounding New Year’s Eve and spent a long holiday with Larry’s parents in upstate Ne...

Q: Howard Wilson, a single individual, sold his principal residence in

Howard Wilson, a single individual, sold his principal residence in Cleveland eight months ago and excluded his entire $148,000 gain on the sale from gross income. He purchased and moved into a new ho...