Chapter 2 Research Problems
(1) What are the key facts in each of the 3 problems?
(2) What is the general issue to be addressed?
(3) What key words would you use to research this question?
(4) Use online tax research tools to answer the question. (Several are listed in Chapter 2.)
(5) What important information would you include in a memo/letter to the “client” to communicate the results of your research?
Please type your answers below. Be concise but thorough enough.
Use proper citation on each question as discussed in Chapter 2.
#1: Shaun is a huge college football fan. In the past, he has always bought football tickets on the street from ticket scalpers. This year, he decided to join the university 's ticket
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Because the miles redeemed were for a free airline ticket. Latrell did not cnvert the miles to cash; So there is no taxable income from the transaction.
(4) About the IRS Announcement 2002-18
The IRS Announcement 2002-18 states “these promotional benefits may generally be exchanged for upgraded seating, free travel, discounted travel, travel-related services, or other services or benefits. Inquiries centered on the taxability of frequent flyer miles or other promotional items that are received as the result of business travel and used for personal purposes. There are numerous technical and administrative issues relating to these benefits on which no official guidance has been provided, including issues relating to the timing and valuation of income inclusions and the basis for identifying personal use benefits attributable to business (or official) expenditures versus those attributable to personal expenditures. Because of these unresolved issues, the IRS has not pursued a tax enforcement program with respect to promotional benefits such as frequent flyer miles. Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in-kind promotional benefits attributable to the taxpayer’s
Regulation §1.704-1(b)(2) states that in determining whether a special allocation has a principal purpose of avoidance or evasion of Federal income tax, a facts and circumstances test must be considered. Such a test involves asking a series of questions
1(a) As a result of a recent court settlement for a client John earned $300,000 for his law practice LLC. He wants to minimize his tax liability and understand how the IRS will treat this money earned. He lease’s office space for $3,500 per month. He wants to know the advantages in leasing office space versus purchasing the building.
The $300,000 is treated as business income. After deducting all of the business expenses, the
1) What is the couple’s taxable income and liability using the amounts reported on the tax return?
Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W
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After thoroughly researching taxable and nontaxable income, the Pontiac G6 sedans awarded to Oprah’s television audience would have been subject to federal taxation and included in their gross income. The Code of Federal
When people teach about the “Discovery of America”, most of the time it is a general view of what happened that day. However, recordings of diaries that give humanity a further understanding on the matter still exist and can be analyzed. These recordings are personal experiences from explorers of the New World. John Smith and William Bradford were explorers of America that recorded their trip to the new continent and their encounter with the Indians. The General History and Plymouth Plantation are based on real experiences that have their similarities and differences on what happened during the discovery of America.
| 19 |LO 4 |Dependency exemption: exceptions to the citizenship or | |New | |
Chapter 5; IRC Secs. 101, 102, 103, & 108; All are excluded from gross income.
After watching the CNBC special about American Airlines and a week inside their business I noticed several interesting things. Though it was dated few years ago many of the issues are still the same. They had several Revenue drivers; Cargo income, excess baggage fees, last minute departure fees, Postal cartage, and miscellaneous charges for meals, drinks, and accessories. These are not needed but sometimes are needed on certain longer flights. They provide an extra income that may just keep a transcontinental flight from losing money.
On Tuesday, November 6, 2012 one of the most crucial presidential elections will take place in our history. The candidates for this upcoming election are as follows: democrat party, current President Barack Obama (president) and Joe Biden (vice); republican party, Mitt Romney (president) and Paul Ryan (vice president); independent/ 3rd party candidates are Virgil Goode, Gary Johnson, and Jill Stein. As the final hours of the most anticipated election approaches, it is important that one is knowledgeable regarding both parties and their intentions for America, if elected for president.
____ 2. The function of _____ is to address "what if" questions. It entails planning, collecting, and analyzing data relevant to marketing decision making, and the communication of the results of this analysis to management.
When Quiksilver announced the start of its women line Roxy in 1990, they defined the brand as a “fun, bold, athletic, daring and classy” brand for young women. Market segmentation is a crucial marketing strategy and Roxy utilizes the four bases that are commonly used for segmenting consumer markets including geographic, demographic, psychographic, and benefits sought segmentation. The geographic segmentation is ideally unlimited for the Roxy target market because the brand offers clothes for both warm and cold weather, however, it focuses mainly on the “beach lifestyle” and is generally more popular in beach towns. The demographic segmentation of the Roxy brand, is aimed to attract young women between the