ACC 553 Week 4 taxation of Individuals Midterm

ACC 553 Week 4 taxation of Individuals Midterm - Week 4 :...

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Week 4 : Taxation of Individuals - Midterm (TCOs 1 and 2) In terms of revenue neutrality, comment on the following:  1. a tax cut enacted by Congress that also contains revenue offsets;  2. a tax cut enacted by Congress that is phased in over a period of years;  3. a tax cut enacted by Congress that contains a sunset provision; and  4. a tax cut enacted by Congress that includes a stealth tax feature. (Points : 20)          2.  (TCOs 1, 2, 3, and 5) During the year, Marcus had the following transactions: Long-term loss on the sale of business use equipment: $6,000 Long-term loss on the sale of personal use camper: $2,000 Long-term gain on the sale of personal use boat: $1,000 Short-term loss on the sale of stock investment: $3,000 Long-term loss on the sale of land investment: $4,000   How are these transactions handled for income tax purposes? Explain your answer! (Points : 20)          3.  (TCOs 4 and 5) Kitty runs a brothel (illegal under state law) and has the following items of income and  expense. What is the amount that she must include in taxable income from her operation?          Income:                                     $200,000        Expenses:                                            Rent                                        8,000 
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ACC 553 Week 4 taxation of Individuals Midterm - Week 4 :...

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