Questions from Federal Taxation

Q: If Susan overpays her state income tax because of excess withholdings,

If Susan overpays her state income tax because of excess withholdings, can she deduct the entire amount in the year withheld? When Susan receives a refund from the state how must she treat that refund...

Q: What is an ad valorem tax? If a tax that is

What is an ad valorem tax? If a tax that is levied on personal property is not an ad valorem tax, under what circumstances may it still be deductible?

Q: When real estate is sold during a year, why is it

When real estate is sold during a year, why is it necessary that the real estate taxes on the property be apportioned between the buyer and seller?

Q: a. Identify the different categories of interest expense an individual may

a. Identify the different categories of interest expense an individual may incur. How is the classification of the interest determined? b. Are these different categories of interest deductible? If so...

Q: At times, the term points is used to refer to different

At times, the term points is used to refer to different types of charges. Define the term and describe when points are deductible.

Q: Tony is a carpenter who owns his own furniture manufacturing business.

Tony is a carpenter who owns his own furniture manufacturing business. During the current year, vandals broke into the workshop, damaged several pieces of equipment, stole his delivery truck, and also...

Q: In which year or years are points (representing prepaid interest on

In which year or years are points (representing prepaid interest on a loan) deductible?

Q: Why does Sec. 267 impose a restriction on the deductibility of

Why does Sec. 267 impose a restriction on the deductibility of expenses accrued and payable by an accrual method taxpayer to a related cash method taxpayer?

Q: a. What is the amount of the annual limitation placed on

a. What is the amount of the annual limitation placed on the deductibility of investment interest expense? b. Explain how net investment income is calculated. c. Is any disallowed interest expense f...

Q: Explain what acquisition indebtedness and home equity indebtedness are with respect to

Explain what acquisition indebtedness and home equity indebtedness are with respect to a qualified residence of a taxpayer. Identify any limitations on the deductibility of interest expense on this in...