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Gonzalo is the owner and beneficiary of a $100,000 policy on the life of his mother. Gonzalo transfers the policy to Don, his brother, as a gift. Don subsequently pays premiums of $40,000. Upon his mother’s death, Don does not include any of the insurance proceeds in income.

Nicole, a single, self-employed taxpayer, earned $140,000 as a tax consultant. Besides this income, she has only a $30,000 capital gain (at the individual level) and no itemized deductions. How much may Nicole claim as a QBI deduction?

Virginie, a single taxpayer and sole shareholder of Brown Corp., sold all her Brown stock for $30,000. Her stock basis was $150,000, and she owned the stock for 3 years. Brown meets the Sec. 1244 requirements. What are the amount and character of Virginie’s loss?

Alberto inherits land from Wendy, his grandmother. Wendy originally paid $40,000 for the land, but its fair market value was $270,000 when Wendy died. Alberto’s beginning basis in the land is $270,000.

A few years ago, Paula purchased a computer for $1,400 and used it for personal purposes. She then converted the computer to business use. The fair market value of the computer on the date of conversion was $500. What is Paula’s beginning tax basis in the computer for purposes of computing depreciation?

During the year, Tobias reports $90,000 of active business income from his law practice. He also owns two passive activities (neither are rental real estate). From Activity A, he earns $20,000 of income, and from Activity B, he incurs a ($30,000) loss. As a result, Tobias reports

Karen suffered a serious, physical illness from eating contaminated food at a restaurant. As a result, she sued the restaurant and recovered the following amounts:   Medical bills$6,000Emotional distress associated with the physical illness$3,000Punitive damages$44,000   What amounts, if any, must Karen include in her gross income?

This year, Hermine paid $13,000 of investment interest expense. She also earned $4,500 in qualified dividends, $5,400 in interest income, and had a short-term capital gain (STCG) of $1,000 and a long-term capital gain (LTCG) of $2,200. The capital gains resulted from the sale of stock held as investments. She has no other investment expenses.   Assuming Hermine does make an election to have her LTCG and qualified dividends taxed at ordinary tax rates, how much investment interest expense may she deduct?

Which of the following employee fringe benefits is generally included in the employee’s gross income?

Select the BEST example of intersectionality