Your client, Charley Long, age $40,$ has requested your advice with respect to his IRA. He has a traditional IRA with a balance of $$250,000$ and his current AGI is $$150,000.$ He expects his income to increase slightly when he retires at age $65.$ Charley has been reading about Roth IRAs and wants your advice as to whether he should roll$-$over the $$250,000$ from his traditional IRA into a Roth IRA. He has sufficient outside money to pay any taxes due on the rollover. What advice would you give Charley?

I$8$:$8-31,-$ This year, Chuck took out a loan to purchase some raw land for investment. He paid $$40,000$ for the land, and he expects that within $5$ years the land will be worth at least $$75,000.$ Chuck is married, and his AGI for the year is $$230,000.$ Chuck paid $$4,300$ IN interest on the loan this year. Chuck has $$2,600$ in interest income and $$1,300$ in dividend income for the year. He plans to itemize his deductions so he can use the interest expense to offset his investment income. What tax issues should Chuck consider?

I$9$:$9-35.-$

I$9$:$9-38-$Dan, expressing grave concern about whether the company had the financial resources to remain in business. He mentioned specifically that a bank was threatening to force Beta to file bankruptcy if it didnt repay its $$100,000$ loan in full. After some negotiation, Dan agreed to loan Beta the $$100,000$ for one year until permanent financing could be obtained. A reasonable interest rate was set and a payment schedule was documented. Unfortunately, business did not improve, and Beta discontinued its business and did not repay the loan. What tax issues should Dan consider?

Answer rating: 100% (QA)

For Charley Long Given Charleys current AGI and the fact that he expects his income to increase slightly when he retires at age 65 he may benefit from ... View the full answer