Questions from Federal Taxation

Q: Explain the legislative reenactment doctrine.

Explain the legislative reenactment doctrine.

Q: What constitutes a payment in determining when a cash-basis taxpayer

What constitutes a payment in determining when a cash-basis taxpayer is entitled to deduct an expense?

Q: What conditions must be met if the economic performance test is to

What conditions must be met if the economic performance test is to be waived for an accrual method taxpayer?

Q: What is the significance of the Thor Power Tool Co. decision

What is the significance of the Thor Power Tool Co. decision?

Q: a. How are overhead costs treated in determining a manufacturing company’s

a. How are overhead costs treated in determining a manufacturing company’s inventory? b. Do retailers have a similar rule? c. Are these rules the same as for financial accounting? If not, explain.

Q: What transactions are subject to the long-term contract method of

What transactions are subject to the long-term contract method of reporting?

Q: a. What conditions must be met in order to use the

a. What conditions must be met in order to use the installment method? b. Why would a taxpayer elect not to use the installment method?

Q: What treatment is given to an installment sale involving related people?

What treatment is given to an installment sale involving related people?

Q: Judy’s Cars, Inc., sells collectible automobiles to consumers. She

Judy’s Cars, Inc., sells collectible automobiles to consumers. She employs the specific identification inventory valuation method. Prices are negotiated by Judy and individual customers. Judy accepts...

Q: Lana operates a real estate appraisal service business in a small town

Lana operates a real estate appraisal service business in a small town serving local lenders. After noting that lenders must pay to bring in a surveyor from out of town, she completes a course and obt...