Ms. Marcia Meyer
311 Santos Court, San Bruno
RE: Qualified Charitable Contribution
It is my opinion that the contention of the IRS regarding your recent $95,000 income tax
deduction as a qualified charitable contribution is incorrect.
Chapt. 4 BkQuiz
1. Stacey is a cash basis attorney. In 2014, she performed services in connection with the
formation of a corporation and received stock with a value of $30,000 for her services.
By the end of the year, the value of the stock had decreased
639. Deductions are allowed unless a specific provision in the tax law provides otherwise. *b. False
640. Mitch is in the 28%tax bracket. *a. True
641. Depending on the nature of the expenditure, expenses *b. False
642. Only some employment re
a. Drew and Megs taxable income is $25,700. (AGI of $65,000 itemized deductions of
$15,000 personal exemptions of $8,100 dependent exemptions of $16,200 = $25,700).
b. Sybils taxable income is $55,800. (AGI of $80,000 personal exemption of $4,0
29. LO.1 Determine the taxpayers gross income for tax purposes in each of the following
a. Deb has taxable income of $1,300 in this scenario because the accrual of $300 worth of
interest was realized upon exchange of the bond for the stock, De
Tax implications of fines, legal fees, etc.
Mr. Ted Jones
Gray Chemical Company
Gray Chemical Company manufactures toxic pesticides, over years of oper
34. LO.1 Daniel, age 38, is single and has the following income and expenses in 2016.
Loss on sale of real estate held for
31. Should Blue Corporation not correct their error in the cost recovery amounts, they would experience
a loss of $14,230.00 on the sale of the asset ($200,000 cost rec. of $5,770 sale price of $180,000 =
$14,230). However, if they do correct the cost rec
LO 29; Olivia is only allowed to deduct the mileage from her first job to her second job under current law.
This would allow Oliva a total mileage deduction for the year of 4,320 miles (18 miles x 5 days x 48
weeks). Olivia is not allowed to deduct the co
Tax The Big Picture
As your accountant, I have some concerns regarding your tax situation for the upcoming
tax year and want to make you aware of them so you can know what to expect. First off, I am
sorry for th
Dear Mr. Ted Jones,
President, Gray Chemical Company,
200 Lincoln Centre Omaha, NE 68182
In regards to charitable trust contribution, legal fees and fines and penalties totaling to $20
million USD disallowed as business expenses by the
John, CEO of Maze Inc., signed as a co-borrower on a $100,000 business loan from
United National Bank. John's personal residence was listed as collateral for the loan and he
repaid the full amount of the loan in 2016. Maze Inc did not report any loan's fr
Client Name: John Smith
Filing Status: Single
Home Address: 1045, Centre Street London UT, Zip Code 84042
Business Address: 381, State Street, London UT, Zip Code 84042
John Smith began an excavation business in 2016 operating as a cash basis taxpayer.
Exam II_Nov. 2015
Instructions: You may complete this exam outside of class and hand-in at 7PM on November 17,
2015, or complete the exam in-class and hand-in at 8PM,
Certain forms have already been prepared by a CPA Tax Partner who was consulted for