Tax reporting for independent contractor income
As an independent contractor for Abe & Murray’s Tax Service, I earned $6,000 during My work from 1/15 through 4/30. Regarding my income, please discuss the following items: What type of income is this? What expenses, if any, could be deducted from the income? What form is used to report income to me and the IRS? Wha ...continues
THE SOCIAL SYSTEM: END-USERS, MANAGERS, AND IT PROFESSIONALS
You work for the CIO of your company as a strategic analyst. The CIO has just read the following article on ZDNet: http://review.zdnet.com/4520-7297-5123825.html He thinks that the author asks a good question at the end of the article but is a little puzzled about the role that the author envisions for corporate customers ...continues
1. Paul inherits stock from his Aunt Sadie that had a basis of $63,000 to Sadie and a fair market value of $54,000 on February 23, 2006, the date of her date. Paul sells the stock on June 21, 2006 for $58,000. What is the amount and character of the gain or loss on the sale? 2. What incentive provisions or preferential trea ...continues
Tax return effects of At-risk and passive loss rules
How do the at-risk rules and passive loss rules can affect a tax return? How is a gain on line 17 of form 1040 can be calculated?
Taxation: involuntary conversion for a condemnation
Tax question: Review and comment on response. 1. Stallings’ personal residence, located in a plush suburban area, is condemned to facilitate the construction of a new freeway artery. Stallings receives a condemnation award of $1,000,000. She uses the award to purchase anew residence for $1,150,000. The adjusted basis of ...continues
1. As marginal tax rates increase, the after-tax cost of a non-deductible expense will A. Increase B. Decrease C. Stay the same 2. A taxable corporation faces a flat 35% marginal tax rate. What is the tax savings from an additional $100,000 deduction? A. $35,000 B. $100,000 C. –0- D. $65,000 3. A taxpayer who th ...continues
1) To whom does Circular 230 apply? 2) What are the suggested best practices for tax advisors? 3) Can the IRS penalize practitioners under Circular 230? Explain
Tax savings strategies for a small business
My wife comes to me with the following tax saving strategies: Computer Consulting received $7900 from customers in the last week of December. Can she just hold on to the money and include it in January 2005 receipts? She would like to purchase a car in the name of Computer Consulting. What are his options? She would like ...continues
Property Transaction: Capital gains and losses
Sarah sells short 100 shares of A stock at $20 per share on January 15, 2006. She buys 200 shares of A stock on April 1, 2006, at $25 per share. On May 2, 2006, she closes the short sale by delivering 100 of the shares purchased on April 1. a. What are the amount and nature of Sarah's loss upon closing the short sale? b. Whe ...continues
Explain how Kevin and Janet took advantage of existing IRS rules to reduce taxes
Practically every line of Kevin and Janet’s form 1040 can be used for tax planning. They had total income of $98,771 and paid federal income tax of $6,838 or 7%. Additionally, Kevin had income from his business of $48,040 and paid self-employment tax of $7,001 or 15%. Explain how Kevin and Janet took advantage of existing IR ...continues
