Topic 10 - Investments
1. Describe how interest income and dividend income are taxed. What are the
similarities and differences in their tax treatment?
Because they are cash method taxpayers, individual investors
Topic 11 - Compensation
Shane is an employee who has had a relatively consistent income over the years.
His withholding is pretty much right on target with his actual tax liability, so he rarely
has much of a
Topic 9 - Property: Dispositions
1. Compare and contrast different ways in which a taxpayer triggers a realization event
by disposing of an asset.
A realization event for tax purposes is created in many
Topic 8 - Property Acquisition and Cost Recovery
Property Acquisition and Cost Recovery
Explain the reasoning why the tax laws require the cost of certain assets to be
capitalized and recovered over time rather than immediately expensed.
Topic-3 - Tax Planning Strategies and Related Limitations
Tax Planning Strategies and Related Limitations
(1) [LO1] The goal of tax planning is to minimize taxes. Explain why this
statement is not true.
Topic- 5 - Gross Income and Exclusions
Topic -5 Gross Income and Exclusions
[LO 1] Explain how the definition of gross income in 61 might influence whether a
particular cash flow is included in gross income.
Topic 4 - Individual Tax Overview
Individual Tax Overview
[LO 1] How are realized income, gross income, and taxable income similar, and how are
Realized income is more broadly defined than
Topic 6 - Individual Deductions
It has been suggested that tax policy favors deductions for AGI compared to
itemized deductions. Describe two ways in which deductions for AGI are treated
Topic-2 - Tax Compliance, the IRS and Tax Authorities
Topic-2 Tax Compliance, the IRS and Tax Authorities SOLUTIONS MANUAL
Discussion Questions (1) [LO1] Name three factors that determine whether a taxpayer is required to file a tax return. Filing status
C was hired by A this year as a corporate executive and a member of the board of
directors. During the current year, C received the following payments or benefits
paid on his behalf.
Contributions to qualified pension plan
Topic 12 - Retirement Savings and Deferred Compensation
Retirement Savings and Deferred Compensation
1. How are defined benefit plans different from defined contribution plans? How are they
As the na