Questions from Individual Taxation


Q: One common argument for imposing so-called sin taxes is the

One common argument for imposing so-called sin taxes is the social goal of reducing demand for such products. Using cigarettes as an example, is there a segment of the population that might be sensiti...

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Q: Explain why taxpayers are allowed to exclude gifts and inheritances from gross

Explain why taxpayers are allowed to exclude gifts and inheritances from gross income even though these payments are realized and clearly provide taxpayers with the wherewithal to pay.

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Q: Devon owns 1,000 shares of stock worth $10,

Devon owns 1,000 shares of stock worth $10,000. This year he received 200 additional shares of this stock from a stock dividend. His 1,200 shares are now worth $12,500. Must Devon include the dividend...

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Q: Identify the amount, if any, that these individuals must include

Identify the amount, if any, that these individuals must include in gross income in the following independent cases. Assume that the individuals are on the cash method of accounting and report income...

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Q: For each of the following situations, indicate how much the taxpayer

For each of the following situations, indicate how much the taxpayer is required to include in gross income and explain your answer: a. Steve was awarded a $5,000 scholarship to attend State Law Schoo...

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Q: Under what circumstances can a taxpayer deduct medical expenses paid for a

Under what circumstances can a taxpayer deduct medical expenses paid for a member of his family? Does it matter if the family member reports significant amounts of gross income and cannot be claimed a...

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Q: Explain the argument that the deductions for charitable contributions and home mortgage

Explain the argument that the deductions for charitable contributions and home mortgage interest represent indirect subsidies for these activities.

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Q: All else being equal, should taxpayers prefer to exclude income or

All else being equal, should taxpayers prefer to exclude income or defer it? Why?

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Q: Describe the type of event that qualifies as a casualty for tax

Describe the type of event that qualifies as a casualty for tax purposes.

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Q: This year Gerry’s friend, Dewey, was disabled. Gerry paid

This year Gerry’s friend, Dewey, was disabled. Gerry paid $15,000 to Dewey’s doctor for medical expenses and paid $12,500 to State University for college tuition for Dewey’s son. Has Gerry made taxabl...

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