"different types of problems toggle...different facts and relationships"
March 27, 2022 4:57 AM Subscribe
Lawsky Practice Problems is a website that generates multiple-choice practice problems for United States federal income tax classes and often provides useful redirections for wrong answers. "The problems are a random selection of facts, names, and randomly (but thoughtfully) generated numbers about a range of basic tax topics and partnership tax topics" such as depreciation, options as compensation, home mortgage interest deduction, capital gains, etc. Professor Sarah Lawsky also works on Catala, a "domain-specific programming language designed for deriving correct-by-construction implementations from legislative texts".
Example: Dalary and Kylan are married and file jointly. Their taxable income in 2022 is $19,860. Assume that there are no available credits. Rounded to the nearest dollar, what is their total tax owed? (Answer: $1,986.)
Example: Roland has a barge that he uses in his business. The class life of the barge is 18 years. Roland acquired the barge on March 27, 2022, for $13,000 and put it into use on that same date. How much depreciation may Roland take in 2029 with respect to the barge? (Assume that Section 168(k) does not apply, and also assume that other depreciable assets were put into use throughout the year.) (Answer: $852, as a result of applying the correct schedule from Rev. Proc. 87-57 to the initial basis.)
Example: Eric contributes the following to Guanaco, LLC, which is taxed as a partnership, in exchange for an interest in Guanaco: a musical composition created by Eric with a fair market value of $58,000 and a basis of $17,000; a tractor unit for over-the-road use with a fair market value of $73,000 and a basis of $23,000 that Eric uses in his trade or business (all of the gain is due to depreciation); and a copier with a fair market value of $80,000 and a basis of $21,000 that Eric uses in his trade or business (all of the gain is due to depreciation). Which of the following is accurate with respect to Eric's holding period in his interest in Guanaco? (Answer: 21% of the holding period in Guanaco is tacked and 79% starts upon Eric's contribution to Guanaco. "The holding period is divided under Section 1223(1), which permits tacking only for the portion of the partnership interest received in exchange for capital assets and Section 1231 assets. Gain subject to recapture is treated as a separate asset that is not a capital asset or a 1231 asset, under Treas. Reg. 1.1223-3(e). Under Treas. Reg. 1.1223-3(b), the percent of the partnership interest that receives a tacked holding period is determined based on the relative fair market values of the capital assets and Section 1231 assets, on the one hand, and the other assets, on the other.")
You can also use the site to practice evaluating statutory language from the Internal Revenue Code.
Example: Dalary and Kylan are married and file jointly. Their taxable income in 2022 is $19,860. Assume that there are no available credits. Rounded to the nearest dollar, what is their total tax owed? (Answer: $1,986.)
Example: Roland has a barge that he uses in his business. The class life of the barge is 18 years. Roland acquired the barge on March 27, 2022, for $13,000 and put it into use on that same date. How much depreciation may Roland take in 2029 with respect to the barge? (Assume that Section 168(k) does not apply, and also assume that other depreciable assets were put into use throughout the year.) (Answer: $852, as a result of applying the correct schedule from Rev. Proc. 87-57 to the initial basis.)
Example: Eric contributes the following to Guanaco, LLC, which is taxed as a partnership, in exchange for an interest in Guanaco: a musical composition created by Eric with a fair market value of $58,000 and a basis of $17,000; a tractor unit for over-the-road use with a fair market value of $73,000 and a basis of $23,000 that Eric uses in his trade or business (all of the gain is due to depreciation); and a copier with a fair market value of $80,000 and a basis of $21,000 that Eric uses in his trade or business (all of the gain is due to depreciation). Which of the following is accurate with respect to Eric's holding period in his interest in Guanaco? (Answer: 21% of the holding period in Guanaco is tacked and 79% starts upon Eric's contribution to Guanaco. "The holding period is divided under Section 1223(1), which permits tacking only for the portion of the partnership interest received in exchange for capital assets and Section 1231 assets. Gain subject to recapture is treated as a separate asset that is not a capital asset or a 1231 asset, under Treas. Reg. 1.1223-3(e). Under Treas. Reg. 1.1223-3(b), the percent of the partnership interest that receives a tacked holding period is determined based on the relative fair market values of the capital assets and Section 1231 assets, on the one hand, and the other assets, on the other.")
You can also use the site to practice evaluating statutory language from the Internal Revenue Code.
that's a really nice copier Eric's got
posted by dismas at 11:57 AM on March 27, 2022 [2 favorites]
posted by dismas at 11:57 AM on March 27, 2022 [2 favorites]
This probably needs a "nominativedeterminism" tag.
Was I the only person thinking that Lawsky was to the law what the Yachtski Test was to yacht rock?
posted by acb at 3:31 PM on March 27, 2022 [1 favorite]
Was I the only person thinking that Lawsky was to the law what the Yachtski Test was to yacht rock?
posted by acb at 3:31 PM on March 27, 2022 [1 favorite]
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posted by drdanger at 8:35 AM on March 27, 2022 [4 favorites]