homework1 - P roblem 72 Chapter 2 72. ( LO5) L atrell...

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Problem 72 Chapter 2 - 72. (LO5) Latrell recently used his Delta Skymiles to purchase a free roundtrip ticket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Latrell’s business travel as a CPA. Latrell’s employer paid for his business trips, and he was not taxed on the travel reimbursement. Use an available tax research service to determine how much income, if any, does Latrell have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel. Latrell will no have any taxable income from the above mention transaction. To determine the answer you please refer to the “IRS Announcement 2002-18”. The related announcement states that no taxable income has come from frequent flier miles that are earned for business travel and later redeemed for in-kind benefits. The ruling does not state that the frequent flier miles can be converted into cash. Problem 49 Chapter 349.
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This note was uploaded on 08/28/2010 for the course ACCT 349 taught by Professor Goyal during the Spring '09 term at University of Phoenix.

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homework1 - P roblem 72 Chapter 2 72. ( LO5) L atrell...

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