Chat 2 - Cpt 4 & 5 Tax16 - CHAT#2 Chapters 4 5 Quiz#1 open...

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CHAT #2 Chapters 4 & 5 Quiz #1 open Sat & Sun Chapters 1 through 5 May enter more than once No research paper! Tax return for the signature project. No check figures!!! Signature Project Information Questions: Excel or MicroSoft Word for Assignments Excel use booklet for each chapter or problem Chapter 4 Gross Income SUMMARY OF CHAPTER Gross income, according to the Internal Revenue Code, includes all income unless specifically exempted by law. This comprehensive definition requires a more probing discussion of what must be included in income. Two further concerns are how much must be included in income and what portion of total income may be excluded. Topical List of Problems 21. Constructive Receipt (¶4125 and ¶4315) 4125 Chat 26. Constructive Receipt (¶4125 and ¶4315) 4125 Add Pr 51. Multiple Choice—Constructive Receipt Income (¶4125) 4125 Add Pr 48. Multiple Choice—Fruit-of-the-Tree (¶4201) 4201 Chat 22. Community Property (¶4215) 4215 Chat 39. Gross Income and Adjusted Gross Income (¶4301) 4301 Add Pr 49. Multiple Choice—Income (¶4301) 4301 23. Gifts and Barter (¶4315) 4315 32. Compensation (¶4315) 4315 Chat 38. Compensation (¶4301 and ¶4315) 4315 Chat 24. Prizes and Awards (¶4345) 4345 25. Rent and Security Deposits (¶4395) 4395 33. Leasehold Improvements (¶4395) 4395 40. Rental Income: Taxable Income Computation (¶4395) 4395 Add Pr 44. Multiple Choice—Rental Income (¶4395) 4395 Add Pr 45. Multiple Choice—Rental Income (¶4395) 4395 Chat 28. Dividend Income and Net Investment Income Tax (¶3405 and ¶4401) 4401 29. Dividend Income and Net Investment Income Tax (¶3405 and ¶4401) 4401 Chat 27. Stock Dividends (¶4401) 4401 30. Stock Sales Gain Computation (¶4401) 4401 31. Dividends—Life Insurance (¶4401) 4401
Add Pr 52. Multiple Choice—Dividend Income (¶4401) 4401 Chat 34. Divorce Payments (¶4451) 4451 Chat 35. Alimony Recapture (¶4451) 4451 36. Alimony Recapture (¶4451) 4451 37. Divorce and Child Support (¶4451) 4451 46. Multiple Choice—Alimony (¶4451) 4451 Add Pr 47. Multiple Choice—Divorce (¶4451) 4451 Add Pr 50. Multiple Choice—Alimony (¶4451) 4451 Chat 41. Forgiveness of Debt (¶4485) 4485 42. Insolvent Taxpayer (¶4485) 4485 Chat 43. Incentive Stock Options (¶4615) 4615 53. Comprehensive Problem—Taxable Income Computation 54. Comprehensive Problem—Tax Due Computation 55. Research Problem—Constructive Receipt Doctrine Constructive Receipt 4125 4315 P4-26 26. Abby must include $260,000 ($250,000 + $100,000) in her gross income for 2015. The $250,000 salary is, of course, includible. Of the $50,000 additional compensation for 2015, $10,000 was includible in her gross income for 2015 since this amount was available to her on December 1, 2015. Therefore, only the $40,000 difference that was not credited to her until February 9, 2016 is includible in her gross income for 2016. The $10,000 that was credited to her account and available to her on December 1, 2015 is includible in her gross income for 2015 under the constructive receipt doctrine. Community Property 4215 P4-22 22. On separate returns the income from property purchased after marriage is considered owned by them in common. The property the wife owned before the marriage is not community property in Nevada. Therefore, the wife has $25,000 of rental income to report and the husband must report $10,000 Gross Income and Adjusted Gross Income 4301 P4-39 39. The taxpayer’s gross income is determined as follows: 0.43 Salary 50000 12 Dividend income 1300 5.16 Gambling income 110

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