Questions from Individual Taxation

Q: Explain why the domestic production activities deduction is sometimes described as an

Explain why the domestic production activities deduction is sometimes described as an “artificial” expense and the apparent rationale for this deduction. How might a business begin to determine the do...

Q: Describe the calculation of the domestic production activities deduction.

Describe the calculation of the domestic production activities deduction.

Q: Describe the limits placed on the domestic production activities deduction and explain

Describe the limits placed on the domestic production activities deduction and explain the apparent reason for each limitation.

Q: Explain the difference between calculating a loss deduction for a business asset

Explain the difference between calculating a loss deduction for a business asset that was partially damaged in an accident and a loss deduction for a business asset that was stolen or completely destr...

Q: How do casualty loss deductions differ when a business asset is completely

How do casualty loss deductions differ when a business asset is completely destroyed as opposed to the destruction of a personal-use asset?

Q: What is the difference between a full tax year and a short

What is the difference between a full tax year and a short tax year? Describe circumstances in which a business may have a short tax year.

Q: Explain why a taxpayer might choose one tax year end over another

Explain why a taxpayer might choose one tax year end over another if given a choice.

Q: In July of this year Stephen started a proprietorship called ECR (

In July of this year Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial informa...

Q: Nicole is a calendar-year taxpayer who accounts for her business

Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for about $12,000 of her services at the first of each month. The bills are d...

Q: Jeremy is a calendar-year taxpayer who sometimes leases his business

Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are tax...