346Sim03.xlsx - Links to Worksheets in File Introduction Questions Analysis Objectives Outcomes The objective of this computerized tax simulation is to

346Sim03.xlsx - Links to Worksheets in File Introduction...

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Links to Worksheets in File Facts Issue Introduction Questions Analysis Which of the three alternatives should Roger take, assuming that he has a 2% discount rate? Authorities Internal Revenue Code (IRC) §1 imposes a tax on an individual's taxable income. IRC §63 defines taxable income to mean gross income, which generally includes all income from whatever source derived (per §61) minus allowable deductions. Section 74 specifically requires that prizes and awards be included in gross income, while §441 requires taxable income to be computed on the basis of the taxpayer's taxable year. Objectives & Outcomes The objective of this computerized tax simulation is to help you learn how tax planning for income is affected by a taxpayer's marginal tax rates and the interaction between those tax rates (as they change over time) and the taxpayer's discount rate (in net present value calculations). To accomplish this objective, you must -read the Facts, Issues, & Authorities sections below,
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