Acct 429 Final Exam 100% Correct Answers

Part 1: Partnership formation. In January of 2010, Jason and Jesse contribute the following assets to

As preparers for Mr. Wells’ 2012 Tax Return our team made several assumptions, some of which would require further input from Mr. Wells. We also ran into some opportunities for tax planning for Jack. This memo outlines those assumptions, questions, and opportunities. The following is a list of assumptions broken down by IRS Form or Schedule:

Section 61 of the Internal Revenue Code defines income as “income from whatever source derived unless otherwise excluded” (2014, IRC Code). In determining income, several key concepts have evolved from this definition. Explain the following concepts, and provide at least one example of each. Explain which concept you think is most beneficial from a taxpayer’s point of view and which concept is most beneficial from IRS’s point of view.

Identify one major exclusion and one tax credit. Find the relevant Internal Revenue Code Section that provides for the exclusion or credit using IRS.GOV, copy the first paragraph, including the Code Section, and paste it into your post. Please answer this question for each: Did Congress enact this exclusion or credit for a social or economic purpose? Or both? For your third post this week, identify one of your colleagues' posts and respond to their observations with a concurrence or not; either way, support your position. Discuss which provides a greater tax advantage to the taxpayer, deductions or tax credits.

Competency 302.2.1: Current Tax System. The student understands the nature, purpose, and scope of the current U.S. tax system.

2. A top official of the government is presenting a case for the continued use of drone airplanes in military conflicts. The official states “Using drones during military surveillance missions is the right course of action because it saves soldiers’ lives.” What is the enthymeme in the official’s argument?

Gold standard:when money was the equivalent to gold 29. Taxes:the people of a country pay in in order for the government provide services 30. Federal Budget:how much money the government has to spend 31. Revenue:how much a company makes 32. Expenditure:how much is spent 33.

4) Explain the differences between statutory and ordinary income. Give examples of either category in your answer.

2. Which two statements describe how taxes influence decisions made when filing a return for an individual taxpayer?

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The issues of taxation

Subchapter “J” of the Internal Revenue Code provides guidance for the treatment of Estates, Trusts and its beneficiaries as well as the income in respect to its decedents. It allows the researcher to determine if and when the income from a property is considered taxable to the estate, trust or its beneficiaries. It also imposes certain procedures for the Fiduciary ("26 U.S. Code Chapter 1, Subchapter J - Estates, Trusts, Beneficiaries, and Decedents")

The purpose of this memo is to devise a practical estate plan for our client who has maintained a lucrative sole proprietorship conducting business in commercial real estate. The goal in our tax planning strategies will be to legally transition a portion of the $1 billion in assets to multiple tax-saving trusts and a family limited partnership (FLP). Additionally, the client would like to begin transferring proportional ownership of the company to his two children over the next thirty years and sell ten percent of the company to an unrelated third party. Furthermore, these tasks need to minimize the client’s taxable estate substantially to reduce his estate tax liability at his death. Moreover, the most proactive method after the FLP is

1. As a public not-for-profit agency, who are Flagstaff District’s customers? List all the potential candidates as customers then decide which you think should be considered by the Flagstaff District to be the customer or customers. Explain your reasoning.

Besides being the main source of direct tax revenue for the Government, income tax is an effective instrument to realise various socio-economic objectives of national policies. This chapter traces the evolution, explains the legal framework and describes the present system of income tax in india.