Tax Accounting II
Discussion Questions 24,25,27,30,32, and 34. Problems 54, 55, 56 and 59
24. Sarah can declare this bad debt as a capital loss and deduct $3,000 per year for 5
years until it is completely used up.
25. In proving the worthlessness of a de
Ch. 8 - part 2 - Exs: 24, 25, 27, 30, 32 and 34
24. Sarah must treat the loan as a non-business bad debt even. The $15,000 bad debt is treated as a shortterm capital loss. If Sarah has no capital gains for the year, she may take a capital loss deduction o
Discussion Questions 1,3,4,7,8,11,12,15,19 and 20
1. Sole Proprietorship - One owner, not a separate legal entity, and no limited liability.
profits taxed once
proprietor's marginal tax rate may be lower than if business were taxed as a corpor
Chapter 1-Tax Research
Discussion questions: 1,2,5,9,10,11,13,14,17,24,29 and 30.
Tax Research-solving tax-related problems by applying tax law to specific sets of facts
1) Types of facts
a) Closed-transaction has already occurred or tax year is closed(co
Chapter 8-Losses and Bad Debts
Part A-Discussion Questions 2,4,9,10,13,14,16,17 and 20. Problems 43,44 and 49.
Part B-Discussion Questions 24,25,27,30,32, and 34. Problems 54, 55, 56 and 59.
Deducting losses-closed transaction doctrine
1) Realized losses
Chapter 14-Special Tax Computation Methods, Tax Credits and Payment of Tax
Discussion Questions 1, 5,6,10,11,20,22, and 28. Problems 47,48,52,59 and 66.
Alternative Minimum Tax (AMT)
a) Separate tax calculation on Form 6251
b) Both the regular
Ch.8 - part 1 - Exs: 2, 4, 9, 10, 13, 14, 16, 17 and 20
2. It depends on the type of property, the manner in which the property is used, the basis in the property,
the amount realized upon disposition, and the way the property is disposed of.
4. If it con