Tax law questions and answers in October 2021

In 2021, Lisa and Fred, a married couple, had taxable income of $306,700. If they were to file separate tax returns, Lisa would have reported taxable income of $127,200 and Fred would have reported ta...
Joseph sells land with an adjusted basis of $175,000 and a fair market value of $160,000 to his mother, Sonia, for $160,000. Joseph reinvests the proceeds in the stock market. Sonia holds the land for...
Mackenzie (self-employed) went from her office in Portland to Lisbon, Portugal, on business. While there, she spent part of the time on vacation. How much of the $5,000 airfare can she deduct based on...
KayLee takes five key clients to dinner and incurs the following costs: $320 limousine rental, $920 drinks and dinner, and $200 tips; assume that there were substantive business discussions during din...
Chelsey purchased a new automobile on July 20, 2018, for $29,000. The car was used 60% for business and 40% for personal use. In 2019, the car was used 30% for business and 70% for personal use. Chels...
Nathan bought a new $1,320,000 seven-year class asset on August 2, 2019. On December 2, 2019, he purchased $800,000 of used five-year class assets. If Nathan elects § 179 and does not take additional...
1. Critically evaluate the appropriateness of having shareholders to manage operations in different types of companies.    2. Discuss the relevance of having dissimilar minimum number of directors f...
Ms. Smith owns shares of the Toronto Dominion Bank (a public corporation) which she purchased some time ago for $550,000.  On December 1, 2019, the shares have a market value of $750,000.  On Decemb...
Tex Meier is from Georgia but now lives in Miami, Florida, with his wife Augusta, who is from Brazil. They own a business that manufactures and sells cookware in Brazil.  The business is profitable i...
John age 40 is single and received  a salary  $85,000 from his employer. In addition his employer paid for his medical insurance premiums of $9,000 and life insurance premiums of $1,000 (for $100,00...
firm which is registered for GST, undertakes the following transactions for the GST period (where GST applies, prices are GST inclusive, and there has been a valid tax invoice unless otherwise specifi...
  Required : Advise ELL Partners regarding the Fringe Benefits Tax implications of the facts below (including the type of Fringe Benefit where applicable). You are not required to calculate the actua...
Frank, age 63, and Linda, age 65, are retired and each have an income of approximately $100,000. The bulk of Linda's income comes from her defined benefit pension plan (DBPP), CPPand OAS, while Frank'...
Phil, a​ cash-basis taxpayer, sells the following marketable securities, which are capital assets during 2020.   Capital Asset Basis Date Acquired Trade Date in 2020 Sales Price A $40,000 Feb. 10,...
Dawn is a single taxpayer. Her income and expenses for the year are as follows:   Income Salary - $69,260 Interest - $611 Short term capital loss - $5,930   Expenses Medical expenses - $2,000 Home m...
                                                                            (4 marks)   Required : Advise what is the net income of the partnership for the curr...
(9 Marks)     Required : Ignoring capital gains tax, discuss whether the sale of the land has generated ordinary income.   Imp Pty Ltd is an importer of quality electrical goods. It purchased its c...
PART B                                                                                                            (14 marks)     Required: Brie...
Required : Discuss the Net Capital Gain  for Sandeep for the 2020-21 tax year. In your answer, ignore any possible application of the small business concessions.    Where appropriate support your a...
Lorianne and Gil are married taxpayers. Lorianne is a full time student at Fordham Law School, and Gil is a full time college professor at Hunter College. The couple reported $169,057 of taxable inc...
Question 3 of 50 Toolbox OR Miguel and Patricia recently sold some land they owned for $200,000. They received the land five years ago as a wedding gift from Miguel's Aunt Sela. Aunt Sela purchased th...
The income of the Cora family trust for the current income year is limited to interest income of $10,000 derived from sources in Australia. When this is derived, the trustee, in accordance with the po...
A dividend of $500 representing 10 cents per share, paid by a company out of income derived from mining in Australia and paid to a resident taxpayer is assessable income in the hands of the shareholde...
The income of the Cora family trust for the current income year is limited to interest income of $10,000 derived from sources in Australia. When this is derived, the trustee, in accordance with the po...
What factors do you consider bear upon the decision of a taxpayer when choosing between the federal court or the administrative appeals tribunal in relation to the disallowance of an objection? Select...
The income of the Cora family trust for the current income year is limited to interest income of $10,000 derived from sources in Australia. When this is derived, the trustee, in accordance with the po...
Berth Vader is a Canadian citizen who has always lived in London, Ontario. He has a spouse and two schoolaged children. As of May 2020, he accepts permanent employment in Akron, Ohio (in the USA). On ...
1- You are the senior tax associate in a small public accounting firm. The largest client of the firm is a man named Will "Big Daddy" Varner. Big Daddy owns numerous businesses mainly through his stat...
Sally Suarez is an associate in a law firm in Panama, of which she is a citizen and resident. She comes to New York to work on the acquisition of a Panamanian corporation by a US corporation, which is...
    Henrich is a single taxpayer. In 2021, his taxable income is $450,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rat...
  Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his wife. What amount of child tax credit (either as a child or a qualifying dependent) will Tre...
Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his wife. What amount of child tax credit (either as a child or a qualifying dependent) will Trey b...
question 6 Pensions and annuities (Line 4a) _____   question 7 Pensions and annuities (Line 4b) ___   question 8 Schedule 1 Line 1 (Taxable refunds)   question 10 Schedule-1 Other income  __   qu...
Question 2 Maurice is an individual tax resident of Australia for tax purposes. He has the following assets: His home was acquired on 20 February 1989 for $140 000. The home was never used for an inco...
Tax Individual Project Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants would like to file a joint tax return for the year. They have 19-year-old twin-daughters who still ...