Questions from Federal Taxation

Q: What is meant by economic performance?

What is meant by economic performance?

Q: Is an accrual method taxpayer permitted to deduct estimated expenses? What

Is an accrual method taxpayer permitted to deduct estimated expenses? What about prepaid expenses? Explain.

Q: What is the impact of having the entire gain on an installment

What is the impact of having the entire gain on an installment sale consist of ordinary income from depreciation recapture?

Q: What impact does the gifting of an installment obligation have on the

What impact does the gifting of an installment obligation have on the donor?

Q: What changes in accounting method can be made without IRS approval?

What changes in accounting method can be made without IRS approval?

Q: Can the IRS require a taxpayer to change accounting methods?

Can the IRS require a taxpayer to change accounting methods?

Q: Explain the purpose of the four-year method used in computing

Explain the purpose of the four-year method used in computing the tax resulting from a net adjustment due to a change in accounting methods.

Q: If a taxpayer changes the method of accounting used for financial reporting

If a taxpayer changes the method of accounting used for financial reporting purposes, must the taxpayer also change his or her method of accounting for tax purposes?

Q: What is the primary impact of the imputed interest rules on installment

What is the primary impact of the imputed interest rules on installment sales?

Q: In 2011, there was a change in the authoritative weight of

In 2011, there was a change in the authoritative weight of interpretive versus legislative regulations. Briefly explain what changed and why.