Questions from Individual Taxation

Q: What risks do employees making an §83(b) election

What risks do employees making an §83(b) election on a restricted stock grant assume?

Q: Explain the differences and similarities between a fringe benefit as a form

Explain the differences and similarities between a fringe benefit as a form of compensation and salary.

Q: Lars Osberg, a single taxpayer with a 35 percent marginal tax

Lars Osberg, a single taxpayer with a 35 percent marginal tax rate, desires health insurance. The health insurance would cost Lars $8,500 to purchase if he pays for it himself (Lars’s AGI is too high...

Q: When an employer provides group-term life to an employee,

When an employer provides group-term life to an employee, what are the tax consequences to the employee? What are the tax consequences for the employer?

Q: Compare and contrast the employer’s tax consequences of providing taxable and nontaxable

Compare and contrast the employer’s tax consequences of providing taxable and nontaxable fringe benefits.

Q: Mike is working his way through college and trying to make ends

Mike is working his way through college and trying to make ends meet. Tara, a friend, is graduating soon and tells Mike about a really great job opportunity. She is the onsite manager for an apartment...

Q: Assume that a friend has accepted a position working as an accountant

Assume that a friend has accepted a position working as an accountant for a large automaker. As a signing bonus, the employer provides the traditional cash incentive but also provides the employee wit...

Q: Explain why an employee might accept a lower salary to receive a

Explain why an employee might accept a lower salary to receive a nontaxable fringe benefit. Why might an employee not accept a lower salary to receive a nontaxable fringe benefit?

Q: Describe a cafeteria plan and discuss why an employer would provide a

Describe a cafeteria plan and discuss why an employer would provide a cafeteria plan for its employees.

Q: Explain why Congress allows employees to receive certain fringe benefits tax-

Explain why Congress allows employees to receive certain fringe benefits tax-free but others are taxable?