Tax 4001 Homework Set 7

Tax 4001 Hampton Spring 2015 Homework Set #4 DUE DATE: February 5, 2015 1. Frank, a single taxpayer with two dependent children, has the following items of income and expense during 2014: Gross Receipts from business 145,000 Business Expenses 178,000 Salary from part-time job 22,000 Interest Income 30,000 Itemized deductions (no casualty or theft) 35,000 a. Determine Frank’s taxable income for 2014 b. Determine Frank’s NOL carryover for 2014 2. Dan and Angela file a joint return. For 2014, they had the following items: Salaries 145,000 Loss on § 1244 stock acquired 4 years ago 62,000 Gain on § 1244 stock acquired 6 months ago 8,000 Non-business Bad Debt 15,000 Determine Dan and Angela’s adjusted gross income (AGI) for 2014. 3. In 2013, Justin loaned his brother Jeremy $7,000. Jeremy has never made a payment to Justin, nor has Justin attempted to collect from Jeremy. This year, Jeremy filed bankruptcy and told Justin that he would not be able to repay the $7,000 loan. Determine Justin’s tax treatment for the loan in the current year –

Tax 4001 Rosenthal Summer 2015 Homework Set #5 1. Jennifer owns a personal-use car that has a FMV of $17,000 and an adjusted basis of $20,000. Jennifer’s AGI is $80,000. Calculate the realized and recognized loss if: a. Jennifer sells the car for $17,000 b. Jennifer exchanges the car for another car worth $17,000 c. The car is stolen and she receives $17,000 in insurance proceeds 2. Scott has decided to dispose of the following asset that he received as a gift. Compute his realized and recognized gain (loss) on these disposals: a. In 2000, he received stock with a FMV of $88,000. The donor’s adjusted basis was $100,000. He sells the stock for $72,000 this year. b. In 2001, he received land with a FMV of $42,000. The donor’s adjusted basis was $50,000. He sells the land this year for $45,000. 3. Jessica’s personal residence originally cost $225,000 ($25,000 of that cost was allocated to the land). After living in the house for seven years, she converts it to rental property. At the date of conversion, the FMV of the house and land was $345,000. As to the rental property, calculate her basis for: a. Loss b. Depreciation

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