Tax Accounting Chapter 1-3

Tax Accounting - Tax Accounting Homework 1 Chapters 1-3 Chapter 1 3 The effect of the Sixteenth Amendment to the U.S Constitution was to affirm

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Tax Accounting Homework 1 Chapters 1-3 2/16/09 Chapter 1 3. The effect of the Sixteenth Amendment to the U.S. Constitution was to affirm what the U.S. Supreme Court has help in its prior decision regarding the Federal income tax. Do you agree? Yes, the sixteenth amendment affirmed the decision in Pollock v Farmers’ Loan and Trust Co. 29. A state that uses a “piggybank” approach to its income tax has “decoupied” from a recent change in the Internal Revenue code. A. What does this mean? It means the tax payers are not allowed the same deductions for state purposes as is allowed for federal purposes. B. Why might it have occurred? This probably occurred because tax payers were deducting too much. 35. Regarding the proposal for a “flat tax,” comment on the following A. Justification for? The justification for flat tax is that it is very simple and beneficial to low- and middle- income taxpayers. B. Major obstacles to enactment? The major obstacles to enact the flat tax are in its pure form. Some organizations such as charities and mortgage companies feel it will hurt them. 53. A provision in the tax law allows gain from an involuntary conversion to be postponed A. Under what circumstances does this provision apply? In order to use involuntary
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This note was uploaded on 03/30/2009 for the course BUS 319 taught by Professor Hs during the Spring '09 term at Our Lady of Holy Cross College.

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Tax Accounting - Tax Accounting Homework 1 Chapters 1-3 Chapter 1 3 The effect of the Sixteenth Amendment to the U.S Constitution was to affirm

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