2. b,c,f,g,h,I. Increase their wealth. a the gain cannot recognized. d (child support payment)is
one of exclusions from gross income. e is deposit. j (gift) is one of exclusions from gross income.
3. except b (accident and health insurance proceeds),
a. Gapital gains and losses on the disposition of property now convert to
ordinary income and losses. Because he becomes a dealer.
b. The safe harbor of withholdings is lost, and new quarterly payments on
income and self-employment taxes must be made.