Transaction Taxable Income Increase (Decrease) E&P; Increase 1. Realized gain of

Question

Transaction Taxable Income Increase (Decrease) E&P; Increase 1. Realized gain of $50,000 on involuntary conversion of building ($30,000 of gain is recognized) 2. Mining exploration costs incurred on June 1 of the current year; $24,000 is deductible from current-year taxable income 3. Sale of equipment to unrelated third party for $300,000; basis is $200,000 (no election out of installment method; no payments are received in the current year). 4. Dividends of $35,000 received from 5%-owned corporation, together with dividends received deduction (assume taxable income limit does not apply). 5. Domestic production activities deduction of $55,000 is claimed in current year. 6. Section 179 expense deduction of $45,000 in current year. 7. Impact of current-year section 179 expense deduction for previous item in succeeding year. 8. MACRS depreciation of $80,000. ADS depreciation would have been $88,000. 9. Federal income taxes paid in the current year of $52,000

Explanation / Answer

Disclosure of taxpayer information to other is permissible under 3 ways: 1. computer processing 2. peer review process 3. Through an administrative order. Itemized deductions not limited to limitation: GIMIC Gambling losses (to the extent of gambling winnings) 2. Investment Interest expense 3. Medical Expenses 4. Casualt Losses (non-business) non-deductible taxes Federal Income Taxes 2. Inheritance tax 3. Business Taxes (deductible on Sch. E) Altertrnative Minimum Tax: Adjustments (+/-) PANIC TIME Passive activity Losses, Acc. Dep., NOL's, Installment Income of a Dealer, Contracts (% complet vs. completed) Tax deductions, Mtg. Interest not used 4 house, Medical(limited to 10% of AGI) Misc. deductions are NOT allowed, Exemptions (personal) and standard deduction

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.