Questions from Federal Taxation

Q: The three different levels of government (federal, state, and

The three different levels of government (federal, state, and local) must impose taxes to carry out their functions. For each of the types of taxes below, discuss which level of government primarily u...

Q: Gary earned $57,000 as an executive. Gary,

Gary earned $57,000 as an executive. Gary, who is single, supported his half sister, who lives in a nursing home. Gary received the following interest: $400 on City of Los Angeles bonds, $200 on a mon...

Q: Matt and Sandy reside in a community property state. Matt left

Matt and Sandy reside in a community property state. Matt left home in April 2017 because of disputes with his wife, Sandy. Subsequently, Matt earned $15,000. Before leaving home in April, Matt earned...

Q: Jack and June are retired and receive $10,000 of

Jack and June are retired and receive $10,000 of social security benefits and taxable pensions totaling $25,000. They have been offered $20,000 for an automobile that they restored after they retired....

Q: Contrast the accounting and economic concepts of income.

Contrast the accounting and economic concepts of income.

Q: Explain the meaning of the term wherewithal to pay as it applies

Explain the meaning of the term wherewithal to pay as it applies to taxation.

Q: A landlord who receives prepaid rent is required to report that amount

A landlord who receives prepaid rent is required to report that amount as gross income when the payment is received. Why would Congress choose to do this? What problem does this create for the taxpaye...

Q: Explain the significance of Lucas v. Earl and Helvering v.

Explain the significance of Lucas v. Earl and Helvering v. Horst.

Q: Under present-day tax law, community property rules are followed

Under present-day tax law, community property rules are followed in allocating income between husband and wife. Is this consistent with Lucas v. Earl? Explain.

Q: Ricardo owns a small unincorporated business. His 15-year-

Ricardo owns a small unincorporated business. His 15-year-old daughter Jane works in the business on a part-time basis and was paid wages of $3,000 during the current year. Who is taxed on the child’s...