Week 4 Discussion Question 2
In order to take the home office deduction, there are various requirements that must be
met. What are they, and why do you feel that they are in place? In addition, employees
must meet an additional requirement. What is it, an
Week 2 Discussion Question 2
Why is the cash method generally used for computing taxable income? When would the
accrual method be used, and why?
Cash method is a method of accounting under which the taxpayer generally reports income when
cash is collected
Week 6 Discussion Question 1
What property exchanges are taxable? Why do you think they are taxable?
According to the text book, the holding period for property acquired by gift begins on the date
the donor acquired the property if the gain basis rule app
Week 1 Discussion Question 1
What is meant by the terms tax avoidance and tax evasion? Is there a difference between
the two? Why should one be legal and the other illegal?
The two differ in that one is legal and one is illegal, but one involves tax plann
Week 4 Discussion Question 1
What expenditures are deductible for self-employed individuals but are not deductible for
employees? Discuss why there would be this distinction.
employer-employee relationship exists when the employer has the right to specify
Week 3 Discussion Question
Why do you think that mortgage interest and real estate taxes for a personal
residence are tax deductible, but rent payments are not? Are rental payments for
a business tax deductible?
I think that the reason a homeowner can ded
Week 1 Discussion Question 2
A client comes to your tax firm. She asks you to research a tax issue and advise
her on how to reduce her exposure to an IRS audit. What resources would you
use in your research, and what would your advice be?
To begin with, I
Week 7 Discussion Question 2
What does "recapture" refer to? What is the effect of recapture? How do you treat
recapture? At what rate would you tax the recapture (i.e., ordinary or capital gains)?
According to our textbook, transactions that would e
Week 2 Discussion Question 1
Please select an exclusion from income. Explain the exclusion and its purpose. What do you
think the congressional intent was for this exclusion?
I have selected donative items; this includes gifts, bequests, inheritances, lif
Week 5 Discussion Question 1
What was the purpose of the AMT? Do you think that AMT currently promotes fairness?
The purpose of the AMT is to alleviate any inequity in the tax system brought about by the
advantages some taxpayers have in avoiding or minim
Week 6 Discussion Question 2
What property exchanges are nontaxable? Why do you think they are nontaxable?
Section 1041 provides that transfers of property between spouses or former spouses incident to
divorce are nontaxable transactions. Therefore, the b
Week 7 Discussion Question 1
What is the purpose behind congress taxing capital gains at a rate lower than ordinary
income? Will this lower tax rate help to stimulate investment spending and the economy?
The third characteristic of proper classification o
Week 5 Discussion Question 2
Why do you think a credit is given for some expenditures but not others? Is there an
expenditure that you think merits credit status?
The child tax credit is given to families that have a child that are under the age of 17 at
Week 3 Discussion Question 2
When an individual pays for business expenses, he or she needs to be careful not
to mix the personal with the business. What are some expenses or areas that
should be of a concern, where individuals need to be careful not to m
Ruth owns a 25% capital and profits interest in the calendar-year RDV Partnership. Her adjusted
basis for her partnership interest on July 1 of the current year is $170,000. On that date, she receives
a proportionate nonliquidating distribution of the fol