Kelly Legner Formal Internal MEMO

Kelly Legner Formal Internal MEMO -...

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Formal Presentation of Facts  DATE: December 9, 2009 TO: Sam and Sandy Jones—Client File FROM: Kelly Legner Facts:  Sam works as a Professor at Solid University. Sam’s salary income is $66,000 for this  year. Sam has no other forms of employment and he is a significant proponent of Internet  education and research at Solid University. Issue:  The issue is whether or not Sam can include his income as a Professor on this year’s  income tax return. Rules:  IRC 61 (a) states except as otherwise provided, gross income means all income from  whatever source derived, including: compensation for services, including fees, commission,  fringe benefits, gross income derived from business, gains derived from dealings in property,  interest…. . Conclusion and Reasoning:  Yes Sam should include his income on his tax return. Facts:  Sandy works as a second grade teacher and earned $28,000 this year. Sandy has no  other forms of employment. Issue:  The issue is whether or not Sandy can include her income on her tax return. Rules:  IRC 61 (a) states except as otherwise provided, gross income means all income from  whatever source derived, including: compensation for services, including fees, commission,  fringe benefits, gross income derived from business, gains derived from dealings in property,  interest…. . Conclusion and Reasoning:  Yes Sandy should include her income on her tax return. Facts:  Sandy received a gift from her Mother totaling in the amount of $15,000. Issues:  The issue is whether or not Sandy should include this gift in her revenue. Rules:  IRC 102 says that gross income does not include the value of property acquired by  gift, bequest, devise or inheritance. 
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Conclusion and Reasoning:   The gift from Sandy’s mother would not be deductable. Facts:  Sam had a total interest income from Lakeland Bank CD totalizing $600. Issues:  The issue is whether or not Sam should include this interest in his tax return this year. Rules:  IRC 163(a) states that there should be a deduction of all interest paid or accrued within  the taxable year on indebtedness. Conclusion and Reasoning:  Yes Sam should include the $600 in interest for his bank  CD Facts:   The Jones had a total Illinois State Lottery prize winnings of $900 this year. The total  amount of Illinois State Lottery Tickets purchased totaled $1,500 for the current year. The total  amount of state income taxes that were withheld from the lottery winnings was a total of $30. Issues:
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This note was uploaded on 05/23/2011 for the course ACCT 827 taught by Professor Gayden during the Spring '11 term at Governors State University.

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Kelly Legner Formal Internal MEMO -...

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