Questions from General Taxation

Q: Robert, age 35, has accumulated $36,000 in

Robert, age 35, has accumulated $36,000 in his traditional IRA. He recently married and would like to withdraw $25,000 from his IRA for a down payment on his first house. Write a letter to Robert stat...

Q: Jennifer, age 40, has accumulated $40,000 in

Jennifer, age 40, has accumulated $40,000 in her traditional IRA. She would like to withdraw $22,000 from her IRA to pay for her daughter’s college expenses. She plans to use $15,000 for tuition and $...

Q: Gary Sanders owns his own real estate business. He has a

Gary Sanders owns his own real estate business. He has a reputation within the community for honesty and integrity and believes that this is one of the reasons his firm has been so successful. Gary wa...

Q: Briefly explain Adam Smith’s four canons of taxation.

Briefly explain Adam Smith’s four canons of taxation.

Q: Ben is the chief executive officer of a restaurant chain based in

Ben is the chief executive officer of a restaurant chain based in Maine. Ben began the business 15 years ago and it has grown into a multimillion-dollar company, franchising restaurants all over the c...

Q: Gamma Corporation, a calendar-year accrual-basis taxpayer,

Gamma Corporation, a calendar-year accrual-basis taxpayer, operates department stores. Alpha Corporation and Beta Corporation are wholly-owned domestic subsidiaries of Gamma Corporation and file a con...

Q: Thomas ran for Congress, raising $2 million for his campaign

Thomas ran for Congress, raising $2 million for his campaign. Six months after losing the election, auditors discovered that Thomas kept $160,000 of the campaign funds and used the money to purchase a...

Q: Samantha has been unemployed for some time and is very short of

Samantha has been unemployed for some time and is very short of money. She learned that the local blood bank has a severe shortage of her type of blood and is therefore willing to pay $120 for each bl...

Q: Your client, Ms. I. M. Gorgeous, is

Your client, Ms. I. M. Gorgeous, is an aspiring actress. She has managed to earn a living doing television commercials but was unable to get the acting parts she really wanted. She decided to have bot...

Q: Last year your client, Barney Bumluck, worked part-time

Last year your client, Barney Bumluck, worked part-time for Timely Tax Return Preparation Service. Barney was promised an hourly wage plus a commission. He worked under this arrangement from early Feb...