3. Which of the following items can be inclusions to gross income?
a. During the year, shares of stock that the taxpayer had purchased as an
investment doubled in value.
This is an inclusion to gross income.
4. During the past year, Jane identified $50,000 as a nonbusiness bad debt. In that tax year,
Jane had $100,000 of taxable income, of which $5,000 consisted of short-term capital gains.
During the current tax year, Ja
4. Classify each of the expenditures as a deduction for AGI, a deduction from AGI, or not
a. Sam gives cash to his father as a birthday gift.
b. Sandra gives cash to her church.
8. Sarah, who has a terminal illness (i.e. one year or less), cashed in her life insurance policy
(cost of $24,000 and proceeds of $50,000) to go on an around-the-world cruise
(recommended by her physician)
4. Ben lost his job when his employer moved its plant. During the year, he collected
unemployment benefits for three months, a total of $1,800. While he was waiting to hear
from prospective employers, he pai
Commissioner of Internal Revenue
Duberstein Et Ux.
Supreme Court of United States
June 13, 1960
Duberstein, president of Duberstein Iron & Metal and taxpayer in this case, received a
Cadillac from Berman, president of Mohawk Metal Corporation. Duberste
United States of America
John William Gotcher et ux.
United States Court of Appeals Fifth Circuit
August 27, 1968
Mr. and Mrs. Gotcher received an expenses-paid trip to Germany for the business
purpose of touring Volkswagen facilities and analyzing the
18. Discuss when 179 expense must be recaptured.
The 179 expensing election is an annual election that applies to the acquisition cost of property
placed in service that year. The immediate expense election