ACCT 553 Week 3 Homework ES

Petitioner married Marianna Packard on November 22, 2008, and they have separate residences until purchasing the house for $203,500 in Tarpon Springs, Florida on December 1, 2009. Mrs. Packard owned and resided in a residence in Clearwater, Florida from April 1, 2004 to November 17, 2009. Petitioner rented a dwelling in Tarpon Springs, Florida, and he does not own the residence during the three years before December 1, 2009. Petitioner and Mrs. Packard

____ 22. When incorporating her sole proprietorship, Samantha transfers all of its assets and liabilities. Included in the

In general, according to IRS, there are no tax deductions that might ease the pain of divorce. However, even though it has no sympathy for the legal fees incurred by a couple who split, a husband and wife might be able to salvage a deduction for the portion of expenses in some circumstances such as tax advice in connection with a divorce, as well as legal fees to obtain taxable alimony. This research paper is going to explore these questions more deeply by examining the provided situation of Bill and Hillary.

31. Rank the following three single taxpayers in order of the magnitude of taxable income (from lowest to highest) and explain your results. Ahmed Gross Income Deductions For AGI Itemized Deductions $ 80,000 8,000 0 Baker $ 80,000 4,000 4,000 Chin $ 80,000 0 8,000

The goal of communications is to make ethics a live, ongoing conversation. If ethics is something that is constantly addressed, referenced frequently in company meetings, and in personal conversations among managers and employees, then people are more aware and more willing to defend the company’s policies when they see or hear of problems. Employees will hold other employees responsible and accountable for living the company’s values.

| 19 |LO 4 |Dependency exemption: exceptions to the citizenship or | |New | |

Access the "Litigation" section of the SEC's website at www.sec.gov/litigation.shtml. Click on "Accounting and Auditing Enforcement Releases." Click on "AAER-3234" filed January 20, 2011. Read the release and the related SEC Complaint. Summarize the release and complaint in 2-3 pages (12-point, double spaced).

Specific Issues: Is the check that Phyllis received from XYZ on May 8 taxable to her?

Under the abandoned spouse rule an individual may file as head of household if he/she is separated, but still married if on the last day of the year (which is December 31st) he/she satisfies the requirements of an abandoned spouse-head of household required by the IRS.

Tiebreaker rules: If a child is claimed as a qualifying child by two or more taxpayers in a given year, the child will be the qualifying child of:

 If an employee will be claiming dependents on the tax return, then he or she

The United States enacted IRC 385 in 1969, which gave tax authorities the power to determine if intercompany loans were, in substance, equity investments. The tax authorities believed then that characterising intercompany loans as equity would resolve the thin capitalisation issue. If the IRS could deem intercompany loans to be investments, it could treat the interest payments as dividends, which are not tax deductible. However, the tax authorities eventually determined these tools were inadequate. In 1989, Congress enacted (IRC) section 163(j) to address the concern of US earnings being “stripped out” in the form of interest payments on debt by a U.S. subsidiary to its foreign parent company. The concern was that the U.S. subsidiary would receive a U.S. tax deduction that reduces its U.S. taxable income while the interest paid to the foreign-based parent corporation may not be subject to U.S. withholding tax (or subject to a reduced rate) under various income tax treaties.

17. Assumption of all debt by a corporation is included under the non-recognition provision of &351. Answer: True

This research project aims at determining IRS position with respect to a petitioner's income tax returns and its relation to the annuity contract. An annuity is made through an insurance company and designed to last the entire lifetime of an individual. The amount payable to the beneficiaries is intended to convert the specific sum of money in terms of periodic payments. The payments are guaranteed for the lifetime or longer of the individual. Relying on the background of the context, IRS has specifically outlined the provisions for periodic payment and taxable portions of the annuity contract. Under this context, gross income is exclusive of any amount receivable as annuities under the annuity contract. The regular payment depends

2b) Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John’s case?