Questions from Individual Taxation

Q: Explain why Congress allows taxpayers to deduct interest forfeited as a penalty

Explain why Congress allows taxpayers to deduct interest forfeited as a penalty on the premature withdrawal from a certificate of deposit.

Q: Using the facts from the previous problem, how would your answer

Using the facts from the previous problem, how would your answer change if instead, Duff adopted the cash method of accounting to allow him to better control the timing of his cash receipts and disbur...

Q: Sandy has determined that her research question depends upon the interpretation of

Sandy has determined that her research question depends upon the interpretation of the phrase “not compensated by insurance.” What type of research question is this?

Q: Using the IRS Web site (www.irs.gov/

Using the IRS Web site (www.irs.gov/uac/The-Tax-Gap), how large is the current estimated “tax gap” (i.e., the amount of tax underpaid by taxpayers annually)? What group of taxpayers represents the lar...

Q: Paul is a widower with several grown children. He is considering

Paul is a widower with several grown children. He is considering transferring his residence into a trust for his children and retaining a life estate in it. Comment on whether this plan will prevent t...

Q: Explain why Congress allows self-employed taxpayers to deduct the employer

Explain why Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.

Q: Identify the sections in the Internal Revenue Code that authorize the use

Identify the sections in the Internal Revenue Code that authorize the use of qualified terminable interests (QTIPs) for gift and estate tax purposes, respectively.

Q: In constructing a keyword search, what should the keyword search include

In constructing a keyword search, what should the keyword search include?

Q: Tim is a plumber who joined a barter club. This year

Tim is a plumber who joined a barter club. This year Tim exchanges plumbing services for a new roof. The roof is properly valued at $2,500, but Tim would have only billed $2,200 for the plumbing servi...

Q: Barry transfers $1,000,000 to an irrevocable trust

Barry transfers $1,000,000 to an irrevocable trust with income to Robin for her life and the remainder to Maurice (or his estate). Calculate the value of the life estate and remainder if Robin’s age a...