Questions from Individual Taxation


Q: Jim purchased 100 shares of stock this year and elected to participate

Jim purchased 100 shares of stock this year and elected to participate in a dividend reinvestment program. This program automatically uses dividends to purchase additional shares of stock. This year J...

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Q: What is the difference between tax avoidance and tax evasion?

What is the difference between tax avoidance and tax evasion?

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Q: Distinguish earned income from unearned income, and provide an example of

Distinguish earned income from unearned income, and provide an example of each.

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Q: “Tax avoidance is discouraged by the courts and Congress.” Is

“Tax avoidance is discouraged by the courts and Congress.” Is this statement true or false? Please explain.

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Q: Describe the three parties engaged in every business transaction and how understanding

Describe the three parties engaged in every business transaction and how understanding taxes may aid in structuring transactions.

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Q: In this chapter we discussed three basic tax planning strategies. What

In this chapter we discussed three basic tax planning strategies. What different features of taxation does each of these strategies exploit?

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Q: What are some common examples of the timing strategy?

What are some common examples of the timing strategy?

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Q: What factors increase the benefits of accelerating deductions or deferring income?

What factors increase the benefits of accelerating deductions or deferring income?

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Q: How do changing tax rates affect the timing strategy? What information

How do changing tax rates affect the timing strategy? What information do you need to determine the appropriate timing strategy when tax rates change?

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Q: Describe the ways in which the timing strategy has limitations.

Describe the ways in which the timing strategy has limitations.

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