7. Answer_____________ Gayle owns a successful consulting business with over 100 employees. Her business has the following meals and entertainment related expenses this year: $16,000 for meals and $12,000 for entertainment directly related to the active conduct of business, $10,000 for the annual holiday party and $2,000 for Sup ...continues
Itemized deductions: which interest paid is deductible
8. Sharon sold her home on February 14th and purchased a new home one month later. The home cost $900,000 and was funded by obtaining an interest only mortgage from Chase for $900,000. She paid $9,000 of points to Chase to obtain this mortgage. On July 1st she refinanced the loan with Bank of America to obtain a lower interest r ...continues
AGI and partnerships: calculate Teresa's AGI
9. Teresa, an attorney, earns $300,000 from her practice. During the year, she paid $50,000 to acquire a 20% interest in a partnership that produces a $200,000 loss ($40,000 distributive share to Teresa). She also receives $35,000 in interest and dividends on other investments. What is Teresa’s AGI if she is a material participa ...continues
Points of taxation: Records for basis, limitations and carryover items
As a tax professional, how would you advise a taxpayer about how to keep track of basis, at risk limitations, and passive activity limitation rules in a partnership interest?
Filing Status, Dependency Exemptions, and Child Credit
Filing Status, Dependency Exemptions, and Child Credit. For the following taxpayers, indicate which tax form should be used, the applicable filing status, and the number of personal and dependency exemptions available, and the number of children who qualify for the child credit. a. Arnie is a single college student who earned ...continues
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 is divorced from her husband. She maintains a home for herself and supports an elderly aunt who lives in a retirement home. ...continues
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?
Completing Form 1040 using Schedule A
John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, provided 100% of his cousin’s support. The cousin lives in Arizona. He wants to take advantage of the presidential election campaign check-off. John is an accountant. Other relevant information includes S ...continues
What’s the difference between physical presence nexus and economic nexus?
What’s the difference between physical presence nexus and economic nexus?
S corporation vs. C corporation, pros and cons of each.
What are the pros and cons of a S corporation vs. a C corporation.
