1. Taxpayer operates a business using the accrual method of accounting. In November of 2019, Taxpayer receives payment from a customer for goods that Taxpayer will not deliver until January of 2021. Assuming Taxpayer wishes to defer income recognition as long as possible and does not recognize income for book purposes before it recognizes it for tax, determine the latest year in which Taxpayer may include the payment in gross income.
2. On 30 March 2019, ABC LLC sold an office building it had placed in service on 1 May 2016. The building had an initial basis of $400,000 Determine the depreciation deduction for 2019, the year of sale.
3. Taxpayer owns a building that she uses in her business. Taxpayer purchased the building several years ago for $230,000. On 29 August 2019, Taxpayer sells the building for $250,000 and pays $15,000 in selling expenses. Through the date of sale, Taxpayer has deducted a total of $46,000 in depreciation. Determine the amount and character of the gain or loss on the sale of the building.
4. Taxpayer owns a retail store in Tampa, Florida. This year, she paid the following expenses related to a trip to a business conference she attended in Chicago, Illinois. Taxpayer spent four days at the conference and stayed an additional day to explore the city. Determine the amount Taxpayer may deduct as business expenses related to this trip after all applicable limitations.
   • Conference registration - $950
   • Airfare - $1,000
   • Lodging per night (five nights) - $325
   • Meals per day (five day) - $125
   • Rental car per day (five days) - $130

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