Our Blog – More About our Services

In 2012, Alva received dividends on her stocks as follows: Amur Corporation (a French corporation whose stock is traded   on an established U.S. securities market) $55,000 Blaze, Inc., a Delaware corporation 25,000 Grape, Inc., a Virginia corporation 12,000 a....

Liz and Doug were divorced on July 1 of the current year after 10 years of marriage. Their current year’s income received before the divorce was as follows: Doug’s salary $41,000 Liz’s salary 55,000 Rent on apartments purchased by Liz 15 years ago 8,000 Dividends on...

Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement? a. In consideration for her one half interest in their personal...

Karen and Al are in the process of negotiating a divorce. They have tentatively agreed on all of the terms, and Karen is to pay Al $240,000 over a three year period. Furthermore, the payments are to be spread over the three years in amounts that will qualify as...

Alicia and Rafel are in the process of negotiating a divorce agreement. They both worked during the marriage and contributed an equal amount to the marital assets. They own a home with a fair market value of $400,000 (cost of $300,000) that is subject to a mortgage...

Ridge is a generous individual. During the year, he made interest free loans to various family members when the Federal rate was 3%. What are the tax consequences of the following loans by Ridge: a. On June 30, 2012, Ridge loaned $12,000 to his cousin, Jim, to buy a...

Tess retires after 30 years of service with her employer. She is 64 years old and has contributed $39,000 to her employer’s qualified pension fund. She elects to receive her retirement benefits as an annuity of $3,000 per month for the remainder of her life. a. Assume...

The LMN Partnership has a group term life insurance plan. Each partner has $150,000 of protection, and each employee has protection equal to twice his or her annual salary. Employee Alice (age 32) has $90,000 of insurance under the plan, and partner Kay (age 47) has...

Comment on the availability of head of household filing status in each of the following independent situations. a. Al lives alone but maintains the household of his parents. In July 2012, the parents use their savings to purchase a Lexus automobile for $62,000. b....