2. Which of the following statements regarding exclusions and/or deferrals is false? a. Exclusions are favorable because taxpayers never pay tax on income that is excluded. b. Interest income from municipal bonds is excluded from gross income.
61(a),(1)) Conclusion: The tax issue here is that John Smith wants to know how the $300,000 he earned through his client fee is taxed. The $300,000 is taxed as ordinary income and is taxed in the year received. John Smith worked on the case for two years but he did not earn the $300,000 until this year so he will include it in this year’s taxable income. Therefore John Smith needs to include the entire $300,000 as ordinary income on his Federal tax return Issue b) How is the $25,000 treated for purposes of federal tax income? Applicable Law & Analysis: “Gross income does not include income attributable to the recovery during the taxable year of any amount deducted in any prior taxable year to the extent such amount did not reduce the amount of tax imposed by this chapter.“ (IRC Sec.
Can MegaCorp, Inc. deduct the loss as ordinary and necessary under IRC 162? Short Answer IRC 162 provides the general rule for determining deductibility of trade or business expenses as ordinary and necessary. This is the standard claim for support of deductibility, but there is no provision in this Code section for deducting items that are capital in nature, which is the IRS contention under IRC 263. The statute is silent as to litigation settlements paid as a result of corporate acquisitions. IRC 263 provides the general rule that no deduction shall be allowed for items that are capital in nature.
The Commissioner of Internal Revenue determined that the Taxpayers had realized income under code section 61 and failed to report any part of their expense-paid trip of $1,372.30 in their gross income on their federal tax return. The Commissioner of Internal Revenue asserted a tax deficiency of $356.79 plus interest. The Taxpayers paid the deficiency plus interest and timely filed a suit against the Internal Revenue Service for a refund. Issue Whether the cost of the expense-paid trip of $1,372.30 is taxable income to Mr. and Mrs. Gotcher under code section 61. Decision Decision in part for the Government and in part for the Taxpayers.
Case 12-3 Provisions and Contingencies Scenario 1 Energy Inc. (Energy), which operates in the oil industry, is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with (1) IFRSs in reporting to its parent and (2) U.S. GAAP for reporting to its U.S.-based lender. Energy’s operations sometimes result in soil contamination. Energy cleans up this contamination when required to do so under the laws of the particular country in which it operates. One country in which Energy operates has no legislation requiring cleanup, and Energy has inadvertently contaminated land in that country in prior years. As of December 31, 20X1, it is virtually certain that a draft law requiring a cleanup of land already contaminated will be enacted, but not until shortly after the year-end.
The court of appeals affirmed and Ms. Brzonkala appealed. LEGAL ISSUE(s): Does the § 13981, the Violence Against Act (VAWA) fall under the commerce clause? HOLDING: No. Affirmed. REASONING: The VAWA statute does not fall under the commerce clause because in no way was the criminal activity related to economic interstate activity.
c. need not be included if management objects. d. all of the above ANS: A NAT: AACSB: Analytic TOP: proxies 22. Which of the following is true of a Rule 504 offering? a. It must be made only to accredited investors.
Another element that must be established beyond a reasonable doubt so as to secure a conviction is that When the US government provides any section of money or property that is essential or demanded, or the state decides to return a contractor, grantee or recipient the requested or demanded money, false claim documents do not need to be submitted directly to the government as the provision virtually covers everything that is of value. 5. Lastly, the false claim is also founded on the element an individual has possession, custody, or control of a property or money used by the government, and lastly, intending to defraud the government. 2. HIPAA privacy standards were designed to accomplish what three broad objectives?
ACCT553 Week 1 Homework _________________________________________________________ Chapter 1 1. Briefly discuss the purpose of the Sixteenth Amendment. Before Sixteenth Amendment, taxes was not allowed on income through constitution, with this amendment Congress was given the power of imposing and collecting taxes on income regardless of its source without any consensus and distribution among the states. Cited: CCH Federal Taxation page no 1151 2. What is the difference between tax avoidance vs. tax evasion?
Atlantic coast and in northern Alaska. The lifted ban was aimed at increasing the United States' energy independence and reducing foreign imports so that it would not need to rely so heavily on other countries for energy supplies. The U.S. Atlantic coast could hold as much as 37 trillion cubic feet of gas and 4 billion barrels of oil, the U.S. Geological Survey estimates. But less than a month later, the BP-leased Deepwater Horizon rig sank about 50 miles (80 kilometers) southeast of Venice, Louisiana. President Obama recently announced during his weekly address that no permits for drilling new deepwater wells will be issued until a 30-day safety and environmental review of all deepwater operations in the Gulf of Mexico has been completed.