All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
south western federal taxation

Questions and Answers of South Western Federal Taxation

William, a high school teacher, earns about $50,000 each year. In December 2022, he won $1,000,000 in the state lottery. William plans to donate $100,000 to his church. He has asked you, his tax
Barbara incurred the following expenses during 2022: $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition, $240 for multiple vitamins and
Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2022. Also in 2022, Pierre paid $455 that was due when he filed his 2021 state income tax return and made
Derek, a cash basis, unmarried taxpayer, had $610 of state income tax withheld during 2022. Also in 2022, Derek paid $50 that was due when he filed his 2021 state income tax return and made estimated
Emma Doyle is employed as a corporate attorney. For calendar year 2022, she had AGI of $75,000 and paid the following medical expenses:Bob and April would qualify as Emma’s dependents except that
Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2022. She purchased the stock for $18,100 on December 28, 2021, and it had a fair market value of $27,000 when
During 2022, Susan incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself:Beth qualifies as Susan’s dependent, and Ed also would qualify except that he
The Wilmoths plan to purchase a house but want to determine the aftertax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket
For calendar year 2022, Giana was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering
Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2022. Bart incurred some significant medical
Nichole, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2022, she files her state income tax return for 2021 and pays an additional $1,000
Ramon had AGI of $180,000 in 2023. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable
Liz had AGI of $130,000 in 2022. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2022.a. What is the amount of Liz’s deduction
In December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following
On December 27, 2022, Roberta purchased four tickets to a charity ball sponsored by the city of San Diego for the benefit of underprivileged children. Each ticket cost $200 and had a fair market
Evan is single and has AGI of $277,300 in 2022. His potential itemized deductions before any limitations for the year total $52,300 and consist of the following:After all necessary adjustments are
Linda, who files as a single taxpayer, had AGI of $280,000 for 2022. She incurred the following expenses and losses during the year:Calculate Linda’s allowable itemized deductions for the year.
Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice’s birthday is September 21, 1974, and
Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively, who file a joint return for 2022. The Deckers live at 1121 College Avenue, Carmel, IN 46032. Paul is an assistant manager at
For calendar year 2022, Stuart and Pamela Gibson file a joint return reflecting AGI of $350,000. Their itemized deductions are as follows:Calculate the amount of itemized deductions the Gibsons may
Thomas is an active participant in the rental condominium property he owns. During the year, the property generates a $15,000 loss. If Thomas has $120,000 of salary, $5,000 of long-term capital
Jesse, an engineer, operates a separate business that he acquired eight years ago. If he participates 85 hours in the business and it incurs a loss of $34,000, under what circumstances can Jesse
Odette owns a beach home that she converted to rental use last year. A company manages the property, and rentals are primarily on weekends. Since the average period of customer use is seven days or
In 2021, Fred invested $50,000 in a general partnership. Fred’s interest is not considered to be a passive activity. If his share of the partnership losses is $35,000 in 2021 and $25,000 in 2022,
Janice acquired an apartment building on June 4, 2022, for $1,600,000. The value of the land is $300,000. Janice sold the apartment building on November 29, 2028.a. Determine Janice’s cost recovery
Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2022. Lori expects the taxable income derived from her business (before considering
Olga is the proprietor of a small business. In 2022, the business’s income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class
Thania inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe’s basis was $35,000, and the fair market value on July 1, 2022 (the date of death), was $45,000. The shares were distributed to
Daniela Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2022, she exchanges it with Lisa Martin (an unrelated party) for
In two unrelated transactions, Laura exchanges property that qualifies for like-kind exchange treatment. In the first exchange, Laura gives up land purchased in May 2020 (adjusted basis of $20,000;
Tom Howard and Frank Pérez are good friends (and former college roommates). Each owns investment property in the other’s hometown (Tom lives in Kalamazoo, MI; Frank lives in Austin, TX). To make
Albert owns 100 acres of land on which he grows spruce trees. His adjusted basis for the land is $100,000. He receives condemnation proceeds of $10,000 when the city’s new beltway takes 5 acres
Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12, 2022, state authorities notify
Emily’s warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2022. Emily, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2023. Calculate
Cabel’s warehouse, which has an adjusted basis of $380,000 and a fair market value of $490,000, is condemned by an agency of the Federal government to make way for a highway interchange. The
Ramesh owns a beach house (four years) and a cabin in the mountains (six years). His adjusted basis is $300,000 in the beach house and $315,000 in the mountain cabin. Ramesh also rents a townhouse in
Nell, Nina, and Nora Potter, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The
Wanda, a calendar year taxpayer, owned a building (adjusted basis of $250,000) in which she operated a bakery that was destroyed by fire in December 2022. She receives insurance proceeds of $290,000
Karl purchased his residence on January 2, 2021, for $260,000, after having lived in it during 2020 as a tenant under a lease with an option to buy clause. On August 1, 2022, Karl sells the residence
Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2022, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on
Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past
Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the
Melaney has had a bad year with her investments. She lent a friend $8,000; the friend did not repay the loan when it was due and then declared bankruptcy. The loan is totally uncollectible. Melaney
Maria meets all of the requirements of § 1237 (subdivided realty). In 2022, she begins selling lots and sells four separate lots to four different purchasers. She also sells two contiguous lots to
George is the owner of numerous classic automobiles. His intention is to hold the automobiles until they increase in value and then sell them. He rents the automobiles for use in various events
Elliott has the following capital gain and loss transactions for 2022.After the capital gain and loss netting process, what is the amount and character of Elliott’s gain or loss? Short-term capital
Shen purchased corporate stock for $20,000 on April 10, 2020. On July 14, 2022, when the stock was worth $12,000, Shen died and his son, Mijo, inherited the stock. Mijo sold the stock for $14,200 on
On May 9, 2022, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2022, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during
Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2021. The bonds had been issued with $80,000 of original issue discount because Peach was in financial
Paul has the following long-term capital gains and losses for 2022: $62,000 28% gain, $21,000 28% loss, $18,000 25% gain, and $64,000 0%/15%/20% gain. He also has a $53,000 short-term loss and a
Keshara has the following net § 1231 results for each of the years shown. What would be the nature of the net gains in 2021 and 2022? Tax Year 2017 2018 2019 2020 2021 2022 Net § 1231
Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2021. Phil does not work due to a disability, but he is a
Asok’s AGI for 2022 is $133,250. Included in this AGI is a $45,000 25% longterm capital gain and a $13,000 0%/15%/20% long-term capital gain. Asok is single and uses the standard deduction. Compute
Jane and Blair are married taxpayers filing jointly and have 2022 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital asset held five years, $2,100 of gain from a
For 2022, Wilma has properly determined taxable income of $36,000, including $3,000 of unrecaptured § 1250 gain and $8,200 of 0%/15%/20% gain. Wilma qualifies for head-of-household filing status.
On June 1, 2018, Skylark Enterprises, a calendar year LLC reporting as a sole proprietorship, acquired a retail store building for $500,000 (with $100,000 being allocated to the land). The store
Copper Industries (a sole proprietorship) sold three § 1231 assets during 2022. Data on these property dispositions are as follows:a. Determine the amount and the character of the recognized gain or
On December 1, 2020, Lavender Manufacturing Company (a corporation) purchased another company’s assets, including a patent. The patent was used in Lavender’s manufacturing operations; $49,500 was
Siena Industries (a sole proprietorship) sold three § 1231 assets during 2022. Data on these property dispositions are as follows:a. Determine the amount and the character of the recognized gain or
Helena has the following long-term capital gains and losses for 2022: $65,000 28% gain, $53,000 28% loss, $28,000 25% gain, and $24,000 0%/15%/20% loss. She also has a $33,000 short-term loss and a
For 2022, Maddie has gross income of $38,350 and a $5,000 long term capital loss. She claims the standard deduction. Maddie is 35 years old and unmarried with two dependent children. How much of
Gray, Inc., a C corporation, has taxable income from operations of $1,452,000 for 2022. It also has a net long-term capital loss of $355,000 from the sale of a subsidiary’s stock. The year 2022 is
In 2022, Beth Jarow had a $28,000 loss from the sale of a personal residence. She also purchased a patent on a rubber bonding process from an individual inventor for $7,000 (and resold it in two
Carla was the owner of vacant land that she was holding for investment. She paid $2,000,000 for the land in 2019. Raymond was an investor in vacant land. He thought Carla’s land might be the site
On May 2, 1992, Hannah Weather (Social Security number: 111-22- 3333) acquired residential real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On
On January 1, 2013, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset’s cost recovery. The asset was sold for $96,000 on
Tan Corporation purchased depreciable tangible personal property for $100,000 in 2020 and immediately expensed the entire cost under § 179. In 2022, when the property was worth $80,000, Tan
Miguel receives tangible personal property as an inheritance in 2020. The property was depreciated by the deceased (Miguel’s father), and Miguel will also depreciate it. At the date of the
Anna received tangible personal property with a fair market value of $65,000 as a gift in 2020. The donor had purchased the property for $77,000 and had taken $77,000 of depreciation. Anna used the
Hana is in the 24% tax bracket and owns depreciable business equipment that she purchased several years ago for $135,000. She has taken $100,000 of depreciation on the equipment, and it is worth
Javier is the sole proprietor of a sporting goods business. During 2022, the following transactions occurred:• Unimproved land adjacent to Javier’s store was condemned by the city on February 1.
Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112.
Justin Stone was an employee of DataCare Services, Inc. His salary was $45,000 through November 10, 2021, when he was laid off. DataCare Services provided medical insurance for Justin and his family
Brianna owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporation). In the current year, each corporation has operating income of
Jasmine owned rental real estate that she sold to her tenant in an installment sale. Jasmine acquired the property in 2010 for $400,000; took $178,000 of depreciation on it; and sold it for $210,000,
Dedriea contributes to her wholly owned corporation some tangible personal property she had used in her sole proprietorship business and depreciated. She had acquired the property for $566,000 and
Why did Congress decide to provide a deduction for qualified business income?
Calculate the taxpayer’s 2022 qualified business income deduction for a qualified trade or business:a. $5,000b. $70,000c. $20,000d. $6,000 Filing status: Taxable income: Net capital
Calculate the taxpayer’s 2022 qualified business income deduction for a qualified trade or business:a. $16,000b. $10,000c. $2,700d. $14,188 Filing status: Taxable income: Net capital
Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates
In 2022, Meghann, a single taxpayer, has QBI of $110,000 and modified taxable income of $78,000 (this is also her taxable income before the QBI deduction). Given this information, what is Meghann’s
Thad, a single taxpayer, has taxable income before the QBI deduction of $200,050. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship).
Jason and Paula are married. They file a joint return for 2022 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner
In 2021, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of
Fred, a cash basis taxpayer, received a $15,000 bonus from his employer in 2022. The bonus was based on the company’s profits for 2021. In 2023, the company discovered that its 2021 profits were
Kyra, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a “specified services” business. In 2022, the business pays $100,000 in W–2 wages, has
Tammy, a single taxpayer, has a part-time job at BigCo, a company in which she has no ownership interest. In addition, she owns and operates LittleCo, a sole proprietorship that is a qualified trade
Ben and Molly are married and will file jointly. Molly generates $300,000 of qualified business income from her single member LLC (a law firm). She reports her business as a sole proprietorship.
Stella Watters is a CPA and operates her own accounting firm (Watters CPA LLC). As a single member LLC, Stella reports her accounting firm operations as a sole proprietorship. Stella has QBI from her
Purple Company has $200,000 in net income for 2022 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,950 standard deduction for
Ellie and YiLing are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has $320,000 of gross income and $210,000 of operating expenses. In
Jennifer is a CPA and a single taxpayer using the standard deduction. In 2022, her CPA practice generates qualified business income of $162,950 and she has no other items of income, deduction, or
Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2022, his proprietorship generates qualified business income of $280,000, he pays W–2 wages
Tristan, who is single, operates three sole proprietorships that generate the following information in 2022 (none are “specified services” businesses).Tristan chooses not to aggregate the
On June 1, 2020, Father sold land to Son for $300,000. Father reported the gain by the installment method, with the gain to be spread over five years. In May 2022, Son received an offer of $400,000
In December 2022, Soraya Corporation sold land it held as an investment. The corporation received $50,000 in 2022 and a note payable (with adequate interest) for $150,000 to be paid in 2024.
Nathan uses the percentage of completion method to report income from his real estate construction contracts. A contract was begun in 2022 and completed in 2023. In 2022, Nathan reported gross income
Neal uses the percentage of completion method to report his gross income from long-term contracts that were to begin in 2022. In 2023, he completes a contract for more than the estimate of total
In 2022, Aurora received a $25,000 bonus computed as a percentage of profits. In 2023, Aurora’s employer determined that the 2022 profits had been incorrectly computed, and Aurora had to refund the
For 2022, Essence Company, a calendar year taxpayer, will change from the cash method for tax purposes to the accrual method. At the end of 2021, Essence showed the following items.What is the §

Showing 500 - 600 of 2880

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App