Questions from Federal Taxation

Q: What is the difference between realized income and recognized income?

What is the difference between realized income and recognized income?

Q: Randy is studying finance at State University. To complete the finance

Randy is studying finance at State University. To complete the finance major, he has to take a basic income tax course. Because Randy does not intend to be a tax expert, he considers the course a wast...

Q: Why must a conduit entity report certain deductions separately?

Why must a conduit entity report certain deductions separately?

Q: What is the effect on a partner's individual tax return if a

What is the effect on a partner's individual tax return if a partnership does not report separately the partner's pro rata share of investment expenses and instead includes these expenses in determini...

Q: The rules for deducting business expenses assure that virtually all expenses related

The rules for deducting business expenses assure that virtually all expenses related to a trade or business or a production of income activity are deductible at some time during the life of the activi...

Q: Discuss how well the rules for deducting expenses implement the ability-

Discuss how well the rules for deducting expenses implement the ability-to-pay concept.

Q: What is/are the criterion (criteria) for the deduction

What is/are the criterion (criteria) for the deduction of an expense by a cash basis taxpayer?

Q: What is the general purpose of the economic performance test?

What is the general purpose of the economic performance test?

Q: What is the fundamental requirement that must be satisfied to deduct a

What is the fundamental requirement that must be satisfied to deduct a business expense?

Q: Dan owns a successful sports bar in downtown Providence. The state

Dan owns a successful sports bar in downtown Providence. The state is considering legislation that would restrict the sale of alcohol in restaurants and bars on Saturdays and Sundays until after 7:00...