Questions from General Taxation


Q: How do rulings issued by the IRS benefit both the IRS and

How do rulings issued by the IRS benefit both the IRS and taxpayers?

See Answer

Q: Joe owes Willy $5,000 from an old gambling debt

Joe owes Willy $5,000 from an old gambling debt. Joe knows that there is no way he can repay the debt in the near future. He asks Joe if he will take a $25,000 life insurance policy that has a cash su...

See Answer

Q: What is the maximum income tax rate that applies to the employee

What is the maximum income tax rate that applies to the employee salary, the employment tax rate(s) on the salary, and the capital gain rate(s) on the long-term capital gains, for these four single in...

See Answer

Q: Walter used the cash method to account for income from his cattle

Walter used the cash method to account for income from his cattle ranch. During an audit in year 3, the IRS auditor discovered a document from a customer indicating that Walter sold 115 head of cattle...

See Answer

Q: Is a property tax generally a progressive, proportional, or a

Is a property tax generally a progressive, proportional, or a regressive tax? Explain.

See Answer

Q: If the Congress were to enact a flat tax, do you

If the Congress were to enact a flat tax, do you believe that there should be any exclusions or deductions from income before the single tax rate is applied? Explain

See Answer

Q: Evaluate the sales tax and the income tax using Adam Smith’s four

Evaluate the sales tax and the income tax using Adam Smith’s four canons of taxation.

See Answer

Q: Evaluate allowing married individuals with dual incomes to choose to file a

Evaluate allowing married individuals with dual incomes to choose to file a joint tax return or to file as two single individuals as a remedy for the marriage penalty.

See Answer

Q: Differentiate the tax treatment of an individual’s capital losses from the tax

Differentiate the tax treatment of an individual’s capital losses from the tax treatment of corporate capital losses.

See Answer

Q: What is the after-tax interest rate that a corporation in

What is the after-tax interest rate that a corporation in the 38 percent tax bracket pays on a loan of $100,000 at 7 percent interest?

See Answer