Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $109,500 for Dave's plumbing services. Which of the following is a true statement? Dave is taxed on $109,500 of plumbing income this year. Steve is taxed on $109,500 of plumbing income this year. Steve is taxed on $109,500 of income from gifts received this year. Dave may deduct the $109,500 received by Steve. All of these are true

Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $109,500 for Dave's plumbing services. Which of the following is a true statement? Dave is taxed on $109,500 of plumbing income this year. Steve is taxed on $109,500 of plumbing income this year. Steve is taxed on $109,500 of income from gifts received this year. Dave may deduct the $109,500 received by Steve. All of these are true

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 4BCRQ

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