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
federal taxation

Questions and Answers of Federal Taxation

Ricardo owns a small unincorporated business. His 15-year-old daughter Jane works in the business on a part-time basis and was paid wages of $3,000 during the current year. Who is taxed on the
Under present-day tax law, community property rules are followed in allocating income between husband and wife. Is this consistent with Lucas v. Earl? Explain.
Explain the significance of Lucas v. Earl and Helvering v. Horst.
Does the fact that an item of income is paid in a form other than cash mean it is nontaxable? Explain.
Office space is often rented without carpet, wall covering, or window covering. Furthermore, many rental agreements specify that these improvements cannot be removed by a tenant if removal causes any
A landlord who receives prepaid rent is required to report that amount as gross income when the payment is received. Why would Congress choose to do this? What problem does this create for the
If a loan is repaid, the lender does not have to include the principal portion of the payment in gross income. There is no exclusion in the tax law that permits taxpayers to omit such amounts from
Explain the meaning of the term wherewithal to pay as it applies to taxation.
Why does the tax concept of income more closely resemble the accounting concept of income than the economic concept?
Contrast the accounting and economic concepts of income.
What phrase is found in both the Sixteenth Amendment to the Constitution and Sec. 61(a)? Why does the phrase appear in both locations?
Larry has severe vision problems and, in the past, he has claimed the additional standard deduction available to blind taxpayers. This year Larry’s doctor prescribed a new type of contact lens that
Bob and Sue were expecting a baby in January, but Sue was rushed to the hospital in December. She delivered the baby but it died the first night. Are Bob and Sue entitled to a dependency exemption
Ed has supported his stepdaughter, her husband, and their child since his wife’s death three years ago. Ed promised his late wife that he would support her daughter from a former marriage and her
Larry and Sue separated at the end of the year. Larry has asked Sue to sign a joint income tax return for the year because he feels that the tax will be lower on a joint return. Larry and Sue both
Bala and Ann purchased as investments three identical parcels of land over a several-year period. Two years ago they gave one parcel to their daughter, Kim, who is now age 16. They have an offer from
Andrea, who is in the 39.6% tax bracket, is interested in reducing her taxes. She is considering several alternatives. For each alternative listed below, indicate how much tax, if any, she would
Jack is starting a business that he expects to produce $60,000 of income this year before compensating Jack for his services. He has $1,000 of other income and itemized deductions totaling $10,000.
Gail is a wealthy widow whose husband died last year. Her dependent daughter lives with her for the entire year. Gail has interest income totaling $382,400 and she pays property taxes and home
Ralph and Tina (husband and wife) transferred corporate bonds worth $30,000 to Pam, their 12-year-old daughter. Pam received $3,500 of interest on the bonds in the current year. Ralph and Tina file
Maria is a single taxpayer. Her salary is $51,000. Maria realized a short-term capital loss of $5,000. Her itemized deductions total $4,000.a. Compute Maria’s adjusted gross income.b. Compute her
Which tax form is used by the following individuals?a. Anita is single, age 68, and has a salary of $22,000 and interest of $300.b. Betty owns an apartment complex that produced rental income of
Virginia is a cash-basis, calendar-year taxpayer. Her salary is $20,000, and she is single. She plans to purchase a residence in 2018. She anticipates her property taxes and interest will total
Bob and Anna are in the 39.6% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owned
In 2017, Lana, a single taxpayer with AGI of $85,400, claims exemptions for three dependent children, all under age 17. What is the amount of her child credit?
Georgia, a single taxpayer, operates a business that produces $100,000 of income before any amounts are paid to her. She has no dependents and no other income. She has itemized deductions of $18,000.
Mike and Linda are a married couple who file jointly. They have three dependent children who are full-time students in 2017. Mike and Linda’s taxable income is $180,000 and they provided $8,000 of
John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax-exempt interest income of $1,000. They paid home mortgage
Debbie is 23 years old, a full-time student and a dependent of her parents. She earns $4,200 working part-time and receives $2,200 interest on savings. She saves both the salary and interest. What is
Jan, a single taxpayer, has adjusted gross income of $250,000, medical expenses of $10,000, home mortgage interest of $3,000, property taxes of $2,000. and miscellaneous itemized deductions of
self-employed. Her gross business income was $49,000 and her business expenses totaled $24,000. Each contributed $5,500 to a deductible IRA. Their itemized deductions total $13,000. Compute Parts a,
For the following independent situations, determine the optimum filing status for the years in question.a. Wayne and Celia had been married for 24 years before Wayne died in an accident in 2015.
In the following situations, indicate whether the taxpayer qualifies as a head of household.a. Allen is divorced from his wife. He maintains a household for himself and his dependent mother.b. Beth
Which of the following taxpayers must file a 2017 return?a. Amy, age 19 and single, has $8,050 of wages, $800 of interest, and $350 of self-employment income.b. Betty, age 67 and single, has a
Bill and Mary plan to marry in December 2017. Bill’s salary is $32,000 and he owns his residence. His itemized deductions total $12,000. Mary’s salary is $39,000. Her itemized deductions total
Juan and Maria, who have two young children, are in the process of obtaining a divorce. Juan expects to have $200,000 of income each year while Maria expects to have $60,000 of income each year.
How many dependency exemptions are the following taxpayers entitled to, assuming the people involved are U.S. citizens? Which dependents qualify for the child credit?a. Andrew supports his cousin
For the following taxpayers, indicate which tax form should be used, the applicable filing status, the number of personal and dependency exemptions available, and the number of children who qualify
Joe and Joan divorce during the current year. Joan receives custody of their three children. Joe agrees to pay $5,000 of child support for each child.a. Assuming no written agreement, who will
Anna, age 65, who lives with her unmarried son, Mario,received $7,000, which was used for her support during the year. The sources of supportwere as follows:Social Security benefits
Juan helps support his mother Maria, his son Jose, and a niece Norma. How many dependency exemptions can Juan claim given these additional facts? Maria lives with Juan. She receives $12,000 of Social
Robert provides much of the support for his daughter, Jane, and her two children. Jane earned $20,000. Robert, whose AGI is $350,000, paid the rent of $11,000 on Jane’s apartment and provided an
John and Carole file a joint return and have three children: Jack, age 23; David, age 20; and Kristen, age 15. All three children live at home the entire year. Below is information about each of the
Wes and Tina are a married couple and provide financial assistance to several persons during the current year. For the situations below, determine whether the individuals qualify as Wes and Tina’s
Carl and Carol have salaries of $14,000 and $22,000, respectively. Their itemized deductions total $8,500. They are married and both are under age 65.a. Compute their taxable income assuming they
The following information relates to Tom, a single taxpayer, age 18:Salary ……………………………………….$1,800Taxable interest income ………….. 1,600Itemized
The following information relates to two married couples:LanesWaynes Salary (earned by one spouse)$32,000$115,000Taxable interest income1,00010,000Deductible IRA contribution5,5000Itemized
Jane and Bill have lived in a home Bill inherited from his parents. Their son Jim lives with them. Bill and Jane obtain a divorce during the current year. Under the terms of the divorce, Jane
Carmen and Carlos, who have filed joint tax returns for several years, separated this year. Carlos works in construction and is often paid in cash. Carlos says he only worked a few weeks this year
This year, Yung Tseng, a U.S. citizen, supported his nephew who is attending school in the United States. Yung is a U.S. citizen, but his nephew is a citizen of Hong Kong. The nephew has a student
Can couples change from joint returns to separate returns? Separate to joint?
a. Who is liable for additional taxes on a joint return?b. Why is this so important?
a. Explain the difference between income splitting and income shifting.b. Why are taxpayers interested in shifting income from one tax return to another within the same family or economic unit?c. Is
Is there any tax advantage for an individual who has held an appreciated capital asset for eleven months to delay the sale of the asset? Explain.
a. What assets are excluded from capital asset status?b. Are capital gains given favorable tax treatment?c. What is the significance of an asset being classified as a capital asset?d. Are capital
Income earned by C corporations is taxed twice, once when the income is earned and again when it is distributed. If so, how is it possible that operating a business as a C corporation can reduce
a. Explain the principal difference in the tax treatment of an S corporation and a C corporation.b. Why would a C corporation be used if an S corporation is generally exempt from tax?
Under what circumstances, if any, can a married person file as a head of household?
Explain what is meant by the phrase maintain a household.
What conditions must be met by a married couple before they can file a joint return?
Summarize the rules that explain which parent receives the dependency exemption for children in cases of divorce.
Explain the purpose of the multiple support agreement.
Can a scholarship qualify as support?
Can tax-exempt income qualify as support? Explain.
Sometimes taxpayers may not be able to file their tax returns by the normal due date. Are extensions available? How long are the extensions? Do extensions enable taxpayers to delay paying the tax
What is the normal due date for the tax return of calendar-year taxpayers? What happens to the due date if it falls on a Saturday, Sunday, or holiday?
Tax rules are often very precise. For example, a taxpayer must ordinarily provide “over 50%” of another person’s support in order to claim a dependency exemption. Why is the threshold “over
Many homeowners itemize deductions while many renters claim the standard deduction. Explain.
a. What determines who must file a tax return?b. Is an individual required to file a tax return if he or she owes no tax?
Under what circumstances must a taxpayer use a rate schedule instead of a tax table?
a. Briefly explain the concept of support.b. If a taxpayer provides 50% or less of another person’s support, is it possible for the taxpayer to claim a dependency exemption? Explain.c. Does support
List the conditions that must be met in order to claim a dependency exemption for qualifying children and qualifying relatives. Briefly explain each one.
a. Explain the distinction between a deduction and a credit.b. Which is worth more, a $10 deduction or a $10 credit?c. Explain the difference between refundable and nonrefundable credits.
Explain the distinction between income and gross income.
a. The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain.b. Why is it important to understand the concept of gross income even though the term is not found
Read the following two cases and explain why the Supreme Court reached different conclusions for cases involving similar facts and issues:CIR v. Court Holding Co., 33 AFTR 593, 45-1 USTC ¶9215
Rick Cabela, a high income client, has contacted you for advice regarding two new proposed business ventures and other tax planning ideas. Rick already operates a highly successful consulting
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and
In April 2017, Dan is audited by the IRS for the year 2015. During the course of the audit, the agent discovers that Dan’s deductions for business travel and entertainment are unsubstantiated and a
Which of the following individuals is most likely to be audited?a. Connie has a $20,000 net loss from her unincorporated business (a cattle ranch). She also received a $200,000 salary as an executive
In 2016, Paul, who is single, has a comfortable salary from his job as well as income from his investment portfolio. However, he is habitually late in filing his federal income tax return. He did not
a. Keith Thomas and Thomas Brooks began a new consulting business on January 1, 2017. They organized the business as a C corporation, KT, Inc. During 2017, the corporation was successful and
Clay, who was single, died in 2017 and has a gross estate valued at $8,500,000. Six months after his death, the gross assets are valued at $9,000,000. The estate incurs funeral and administration
Betty, a married taxpayer, makes the following gifts during the current year (2017): $20,000 to her church, $50,000 to her daughter, and $40,000 to her husband. What is the amount of Betty’s
Jill and George are married and file a joint return. They expect to have $425,000 of taxable income in the next year and are considering whether to purchase a personal residence that would provide
Based on the amounts of taxable income below, compute the federal income tax payable in 2017 on each amount assuming the taxpayers are married filing a joint return. Also, for each amount of taxable
The profession of tax practice involves four principal areas of activity. Discuss these four areas.
In reference to tax research, what is meant by the best possible defensibly correct solution?
What is the statute of limitations for transactions involving:a. Fraud (e.g., failure to file a tax return)b. Dis-allowance of tax deduction itemsc. The omission of rental income that is greater than
If a taxpayer files his or her tax return and receives a tax refund from the IRS, does this mean that the IRS feels that the return is correct and will not be subject to a future audit.
a. What does the term “hazards of litigation” mean in the context of taxation?b. Why would the IRS or a taxpayer settle or compromise a case based on the “hazards of litigation”?
Anya is concerned that she will be audited by the IRS.a. Under what circumstances is it possible that the IRS will review each line item on her tax return?b. Is it likely that all items on Anya’s
What types of taxpayers are more likely to be audited by the IRS?
What is the primary service function provided by the National Office of the IRS?
Congressional committee reports are an important source of information concerning the legislative enactment of tax law.a. Name the three Congressional committee reports that are issued in connection
The Internal Revenue Code is the most authoritative source of income tax law. In trying to resolve an income tax question, however, a tax researcher also consults administrative rulings (Income Tax
Why is a thorough knowledge of sources of tax law so important for a professional person who works in the tax area?
The PDQ Partnership earned ordinary income of $150,000 in 2017. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses the standard deduction, and has other
Partnerships and S corporations are flow-through entities. In connection with filing annual tax returns, these entities must include Form K-1 in the returns. What is Form K-1, what is its purpose,
For flow-through entities, such as partnerships, how does the tax law use partner basis adjustments to prevent double taxation of partnership income?

Showing 2000 - 2100 of 2126

First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

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