Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 12, Problem 37P
a.
To determine
Discuss regular income tax consequences and AMT consequences for B in 2014.
b.
To determine
Discuss regular income tax consequences and AMT consequences for B in 2018.
c.
To determine
Discuss regular income tax consequences and AMT consequences for B in 2019.
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In 2018 your employer, a publicly traded corporation, gave you options to purchase
1,000 shares of their stock at a price of $13.26 per share. At that time, the shares were
trading at $13.25 a share. In April 2020, you exercise all 1,000 options when the shares
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share. Document the tax impact of these transaction on your Net Income (Division B)
and Taxable Income (Division C).
On December 31, 2018, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his 9 year old son, Patrick London. On February 24, 2019, the shares pay eligible dividends of $2,060 ($2,843 taxable amount) and, on August 31, 2019, Patrick sells the shares for $39,800.
Required: What are the tax consequences for Mr. London and Patrick in each of the years 2018 and 2019? If there are no tax consequences for either individual in a given year, you should clearly state this fact in your answer.
Suzy Service Company (SSC) grants an ISO to Bill on March 31, 2016, for 200 shares with an exercise price of $3, the FMV of the stock of March 31, 2016. Mary Jo exercises the ISO on April 15, 2017, when the stock is worth $5 a share. She sold the stock on September 12, 2016, for $6 a share.
What are the tax consequences to Mary Jo and SSC on the following dates?
(a) March 31, 2016 (Grant)
(b) April 15, 2017 (Exercise)
(c) September 12, 2017 (Sale of stock)
Chapter 12 Solutions
Individual Income Taxes
Ch. 12 - Kelly was promoted and received a substantial...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Can any nonrefundable credits, other than the...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - During the year, Rachel earned 18,000 of interest...Ch. 12 - Compute the 2019 AMT exemption for the following...Ch. 12 - In March 2019, Serengeti exercised an ISO that had...Ch. 12 - Prob. 21CECh. 12 - Prob. 22CECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26PCh. 12 - Arthur Wesson, an unmarried individual who is age...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Lisa records nonrefundable Federal income tax...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - In March 2019, Helen Carlon acquired used...Ch. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Christopher regularly invests in internet company...Ch. 12 - Sammy and Monica, both age 67, incur and pay...Ch. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Anh is single, has no dependents, and itemizes...Ch. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Jane and Robert Brown are married and have eight...Ch. 12 - Prob. 49PCh. 12 - Renee and Sanjeev Patel, who are married, reported...Ch. 12 - Prob. 51PCh. 12 - Lynn, age 45, is single and has no dependents. Her...Ch. 12 - Prob. 53PCh. 12 - Robert A. Kliesh, age 41, is single and has no...Ch. 12 - Prob. 55CPCh. 12 - Prob. 1RPCh. 12 - Prob. 2RPCh. 12 - Prob. 3RPCh. 12 - Prob. 1CPACh. 12 - Prob. 2CPACh. 12 - Carol reports taxable income of 48,000. Included...Ch. 12 - Prob. 4CPA
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