Deductions: Employee and Self-Employed-Related Expenses
Solutions to Research Problems
The facts involving Aaron are identical to those in Ronald E. Byers (94 TCM 438, T.C.
Memo. 2007331). In resolving employment status, the court applied
CORPORATIONS AND PARTNERSHIPS
WHAT IS A CORPORATION?
Role of State Law. Compliance with state law (e.g., obtaining a charter, issuing stock) is
the starting point in creating a corporation. On occasion, however, such entities a
A number of observations about this chapter serve as an overall introduction.
Advantages of qualified deferred compensation plan .
A second potential advantage is that the employee's
ACCOUNTING PERIODS AND METHODS
Role of the Accountant . Accountants have particular expertise in advising clients in
this area due to a broad understanding of the use of financial accounting methods (e.g.,
SECTION 1231 AND RECAPTURE PROVISIONS
OVERVIEW OF SECTION 1231 AND RECAPTURE PROVISIONS TEXT
Chapter 17 discusses 1231 assets and the treatment they receive upon disposition.
Section 1231 assets
CAPITAL GAINS AND LOSSES
Chapter 16 discusses capital assets and the treatment they receive upon disposition.
This chapter does not discuss the passive activity rules. It is assumed that none of
The Lecture Notes for Chapter 14 contain a model for gains and a model for losses. The
components of these models that are emphasized in this chapter are the postponed ga
PROPERTY TRANSACTIONS: DETERMINATION OF
GAIN OR LOSS AND BASIS CONSIDERATIONS
OVERVIEW OF PROPERTY TRANSACTIONS
The following models provide an overview of property transactions (see Concept
Summary 14.1 in the text).
TAX CREDITS AND PAYMENT PROCEDURES
TAX POLICY CONSIDERATIONS
Tax Credits as a Tax Policy Tool . Over the years, Congress has used tax credits
extensively to encourage desirable activities including the conservation of energy (e
ALTERNATIVE MINIMUM TAX
INDIVIDUAL ALTERNATIVE MINIMUM TAX (AMT)
Purpose of AMT. The purpose of the AMT is to accomplish a more equitable
distribution of the tax burden among taxpayers .
Statistical data compiled by the Depa
THE TAX SHELTER PROBLEM
In addition to discussing investment interest and limitations on other investment losses
(see items 43 and 44 in these lecture notes), this chapter deals with the at-risk provisions
DEDUCTIONS AND LOSSES:
CERTAIN ITEMIZED DEDUCTIONS
Personal Deductible Expenses . Chapter 10 is principally concerned with expenses that
are essentially personal in nature but which are deductible due to legislative
Depreciation, Cost Recovery, Amortization, and Depletion
DEPRECIATION, COST RECOVERY,
AMORTIZATION, AND DEPLETION
Date Placed in Service (see Concept Summary 8.1 in the text ). The applicable system
DEDUCTIONS AND LOSSES:
CERTAIN BUSINESS EXPENSES AND LOSSES
OVERVIEW OF INTRODUCTORY MATERIAL
Importance of the for/from Concept. Reinforcement of an understanding of the tax
formula is helpful. In this regard, Table 1 at the en
DEDUCTIONS AND LOSSES: IN GENERAL
CLASSIFICATION OF DEDUCTIBLE EXPENSES
Section 61 provides an all inclusive definition of income, but deductions are allowed
only by statute or legislative grace .
An introductory preview of w
GROSS INCOME: EXCLUSIONS
ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME (See Exhibit 5.1 in the
Gifts. The major reason for excluding gifts from income is to prevent the tax laws from
interfering with an individual's
Gross Income: Concepts and Inclusions
GROSS INCOME: CONCEPTS AND INCLUSIONS
GROSS INCOME WHAT IS IT?
What is Income?
Realization. Realization occurs when the taxpayer has a transaction with
another entity .
TAX FORMULA AND TAX DETERMINATION;
AN OVERVIEW OF PROPERTY TRANSACTIONS
COMPONENTS OF THE TAX FORMULA
The following formula is used to compute taxable income for individual taxpayers (see
Figure 3.1 in the text ):
WORKING WITH THE TAX LAW
STATUTORY SOURCES OF THE TAX LAW
Relationship Between the Constitution and the Sixteenth Amendment .
Constitution. The source of the Federal taxing authority is the U.S. Constitution
AN INTRODUCTION TO TAXATION
AND UNDERSTANDING THE FEDERAL TAX LAW
LEARNING AND COPING WITH TAXATION
A few simple illustrations of the effect of taxation on individual behavior help
emphasize the role taxation plays in our everyd