(d) What result if Employer transferred the residence to Employee in fee simple in the year that Employee accepted the position and commenced work? Does the value of the residence constitute excluded lodging? 2. Planner incorporated her motel business and the corporation purchased a piece of residential property adjacent to the motel. The corporation by contract “required” Planner to use the residence and also furnished her meals. Planner worked at the motel and was on call 24 hours a day. May Planner exclude the value of the residence or the meals or both from her gross income?
3. State highway patrolman is required to be on duty form 8 a.m. to 5 p.m. At noon he eats lunch at various privately owned restaurants which are adjacent to the state highway. At the end of each month the state reimburses him for his luncheon expenses. Are such reimbursements included in his gross income? See Commissioner v. Kowalski, 434 U.S. 77. CHAPTER 6Problems p. 124Internal Revenue Code: Sections 1001(a), (b) first sentence, (c); 1011(a); 1012Regulations: Section 1.001-1(a)Internal Revenue code: Sections 109; 1011(a); 1012; 1016(a)(1); 1019.Regulations: Sections 1.61-2(d)(2)(i); 1.1012-1(a)1. Owner purchases some land for $10,000 and later sells it for $16,000.(a) Determine the amount of Owner’s gain on the sale. (b) What difference in result in (a), above, if Owner purchased the land by paying $1,000 for an option to purchase the land for an additional $9,000 and subsequently exercised the option?
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- Revenue, Taxation in the United States