Questions from Individual Taxation

Q: Compare and contrast the recovery periods of §197 intangibles, organizational

Compare and contrast the recovery periods of §197 intangibles, organizational expenditures, start-up costs, and research and experimentation expenses.

Q: Compare and contrast the cost and percentage depletion methods for recovering the

Compare and contrast the cost and percentage depletion methods for recovering the costs of natural resources. What are the similarities and differences between the two methods?

Q: Explain why percentage depletion has been referred to as a government subsidy

Explain why percentage depletion has been referred to as a government subsidy.

Q: Explain the reasoning why the tax laws require the cost of certain

Explain the reasoning why the tax laws require the cost of certain assets to be capitalized and recovered over time rather than immediately expensed.

Q: Explain the differences and similarities between personal property, real property,

Explain the differences and similarities between personal property, real property, intangible property, and natural resources. Also, provide an example of each type of asset.

Q: Explain the similarities and dissimilarities between depreciation, amortization, and depletion

Explain the similarities and dissimilarities between depreciation, amortization, and depletion. Describe the cost recovery method used for each of the four asset types (personal property, real propert...

Q: Is an asset’s initial or cost basis simply its purchase price?

Is an asset’s initial or cost basis simply its purchase price? Explain.

Q: Nancy operates a business that uses the accrual method of accounting.

Nancy operates a business that uses the accrual method of accounting. In December, Nancy asked her brother, Hank, to provide her business with consulting advice. Hank billed Nancy for $5,000 of consul...

Q: Compare and contrast the basis of property acquired via purchase, conversion

Compare and contrast the basis of property acquired via purchase, conversion from personal use to business or rental use, a nontaxable exchange, gift, and inheritance.

Q: Explain why the expenses incurred to get an asset in place and

Explain why the expenses incurred to get an asset in place and operable should be included in the asset’s basis.