Questions from Individual Taxation

Q: Based on the definition of gross income in §61 and related

Based on the definition of gross income in §61 and related regulations, what is the general presumption regarding the taxability of income realized?

Q: Describe the concept of realization for tax purposes.

Describe the concept of realization for tax purposes.

Q: Conceptually, when taxpayers receive annuity payments, how do they determine

Conceptually, when taxpayers receive annuity payments, how do they determine the amount of the payment they must include in gross income?

Q: Compare and contrast realization of income with recognition of income.

Compare and contrast realization of income with recognition of income.

Q: Andre constructs and installs cabinets in homes. Blair sells and installs

Andre constructs and installs cabinets in homes. Blair sells and installs carpet in apartments. Andre and Blair worked out an arrangement whereby Andre installed cabinets in Blair’s home and Blair ins...

Q: What issue precipitated the return of capital principle? Explain.

What issue precipitated the return of capital principle? Explain.

Q: Compare how the return of capital principle applies when (1)

Compare how the return of capital principle applies when (1) a taxpayer sells an asset and collects the sale proceeds all immediately and (2) a taxpayer sells an asset and collects the sale proceeds o...

Q: This year Jorge received a refund of property taxes that he deducted

This year Jorge received a refund of property taxes that he deducted on his tax return last year. Jorge is not sure whether he should include the refund in his gross income. What would you tell him?

Q: Describe in general how the cash method of accounting differs from the

Describe in general how the cash method of accounting differs from the accrual method.

Q: Janet is a cash-basis calendar-year taxpayer. She

Janet is a cash-basis calendar-year taxpayer. She received a check for services provided in the mail during the last week of December. However, rather than cash the check, Janet decided to wait until...