ch. 4.docx - Chapter 4 Gross Income 2 Compare and contrast the economic benefit doctrine and the constructive receipt doctrine The economic benefit

ch. 4.docx - Chapter 4 Gross Income 2 Compare and contrast...

This preview shows page 1 - 2 out of 5 pages.

Chapter 4: Gross Income 2. Compare and contrast the economic benefit doctrine and the constructive receipt doctrine. 4.Ilana is short of money, so he asks his boss for an advance of $25. Is this taxable income to Ilana? 5.Mr. Chen directs his employer to deduct $50 per week from his pay for the purchase of U.S. savings bonds. Can Mr. Chen exclude this amount from his gross income? Explain. No, Mr. Chen cannot exclude his earned money used to purchase savings bonds. Payrolldeduction items are not exclusions from gross income. 7. Under what conditions will scholarships or fellowships granted by an educational institution not be included in gross income. Scholarships received by a degree candidate are excludable from gross income if amounts received cover the costs of tuition, books, supplies, and course-related fees. On the other hand, scholarships for room and board are not excluded from gross income. 9.In a rental agreement, when are improvements to the property made by the lessee regarded as income? 11. An elderly woman gives stocks and bonds to her son for management and safekeeping. She keeps the stocks and bonds in her own name. He is to manage the portfolio at his choosing. To whom are the dividends and capital gains taxable at year-end?
Image of page 1
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture