Rob sells stock with a cost of $3,000 to his daughter for $2,200, which is its fair market value. Later the daughter sells the stock for $3,200 to an unrelated party. Which of the following describes the tax treatment to Rob and Daughter?

Kayla reported the following amounts in her 2023 tax return:Interest income$ 6,900 Loss from sole proprietorship(20,000)AGI (13,100)Standard deduction(13,850)​($26,950)Kayla has generated an NOL of

Gwen, an independent consultant, traveled to New York City on a business trip in 2023. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area. Gwen’s plane fare for the trip was $250. Meals cost $80 per day. Lodging and other incidental expenses amounted to $250 per day. Gwen may deduct

In calculating depletion of natural resources each period

In April 2023, Emma acquired a machine for $60,000 for use in her business. The machine is classified as 7-year property. Emma does not expense the asset under Sec. 179 or bonus depreciation. Emma’s depreciation on the machine for 2023 is

Richard, a self-employed business consultant, in 2023 traveled from New Orleans to New York for both business and vacation. He spent 4 days conducting business and some days vacationing. He incurred the following expenses:What is his deduction under the following two circumstances?a.He spends three days on vacation, in addition to the business days.b.He spends six days on vacation, in addition to the business days.

During the year 2023, a calendar-year taxpayer, Marvelous Munchies, a chain of specialty food shops, purchased equipment as follows:Assume the property is all 5-year property. What is the maximum depreciation that may be deducted for the assets this year, 2023, assuming Sec. 179 expensing and bonus depreciation are not claimed?

All of the following may deduct education expenses except

During the current year, Jack personally uses his summer home for 25 days. He also rented his summer home to a group of vacationers for 12 days for $600 per day. How much income does Jack report from the rental of his summer home?

Chelsea, who is self-employed, drove her automobile a total of 20,000 business miles in 2023. This represents about 75% of the auto’s use. She has receipts as follows:Parking (business only)$500Tolls (business only)200Repairs$1,000Chelsea uses the standard mileage rate method. She can deduct