Acct-553 Federal Taxes and Management Decisions Entire Course

Sale of rental property does not qualify for exclusion 121 because the two year resident occupation limit cannot be satisfied in income producing business property. The sale will fall under section 1231 which encompasses transactions of sales or exchanges of business property held for longer than one year. In order to determine treatment of section 1231 you must combine all section 1231 gains and losses for the year. A net loss is an ordinary loss. A net gain is ordinary income up to the amount of your non-recaptured section 1231 losses from previous years. Any remaining balance becomes a long-term capital gain. The formula for calculating gain or loss involves subtracting the cost basis from the selling price. If you have taken depreciation on the property in the past and are

The Internal Revenue Code (IRC) is the supreme source of income tax law. When trying to resolve an income tax question, a tax practitioner will look to other sources in addition to the IRC. For example, the tax practitioner may consult IRC regulations,

b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the

A corporation that distributes property that has appreciated in value must recognize a gain at the time of distribution. The corporation is treated as if it had sold the property. The gain equals the property 's fair market value less its adjusted basis. Code Sec. (b). However, the corporation does not recognize a loss if the property had declined in value. Also, the corporation recognizes no gain or loss if t distributes its own stock rights to its shareholders. Code Sec. (a). The character of the recognized gain depends on the property distributed; thus it may be ordinary income, capital gain, or Section 1231 gain.

1. Section 351 (which permits transfers to controlled corporations to be tax deferred) can be justified under the

In order to determining how the $300,000 fee was received as Federal income on the part Mrs. John Smith, we first have to determine the requirements for income. According to Code Sec. 61(a)(1) of the Internal Revenue Code (IRC) “gross income includes all income from whatever source derived,” that is including the following items: compensation for services, including fees, commission, fringe benefits and similar items (Intuit-TaxAlmanac, 2006). In John’s case, income received from fees that were paid by his client from rendered services will meet that requirement of gross income. Under Section

3. Allen visits Reno, Nevada, once a year to gamble. This year his gambling loss was $25,000. He commented to you, “At least I didn’t have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000. “What are the relevant tax issues for Allen?

(TCO B) From the information given below, determine Marcie's gross income for tax purposes. Salary $40,000 Interest (checking account) $50 Cash received as birthday gift $900 Dividends (mutual funds) $500 Inheritance received on father's death $22,000 Cash received from insurance for accident

ACCT 324 Federal Tax Accounting I Entire Course http://www.devryguiders.com/downloads/acct-324-federal-tax-accounting-i-entire-course/ ACCT 324 Week 1 DQ 1 ACCT 324 Week 1 DQ 2 ACCT 324 Week 1 Quiz – Federal Tax Law and Process ACCT 324 Week 2 DQ 1 ACCT 324 Week 2 DQ 2 ACCT 324 Week 2 Quiz – Income Inclusions, Exclusions & Accounting Methods ACCT 324 Week 2 You Decide ACCT 324 Week 3 Course Project: Deductions, Losses & Depreciation ACCT 324 Week 3 DQ 1 ACCT 324 Week 3 DQ 2 ACCT 324 Week 3 Quiz – Deductions, Losses & Depreciation ACCT 324 Week 4 DQ 1 ACCT 324 Week 4 DQ 2 ACCT 324 Week 4 Midterm Exam – Deductions, Losses & Passive Activities ACCT 324 Week 5 Course Project ACCT 324 Week 5 DQ 1 ACCT 324 Week 5 DQ 2 ACCT

The issues of taxation

| 19 |LO 4 |Dependency exemption: exceptions to the citizenship or | |New | |

The nonrecourse debt being $4 mm, which is greater than the ship’s fair value of $3 mm, will be extinguished because the lender can only seize the collateral – which is the cruise ship.

The provisions of the capital gains or losses are applicable on the following three kinds of legal personalities:

Under this group, we have the capital gain tax, documentary stamp tax, donor’s tax, estate tax, income tax, percentage tax, value added tax and excise tax. A capital gain tax is a tax imposed on the earnings of a seller has gained from the sale of his/her capital assets (Castillo, 2015). In identifying the capital assets, we need to understand that the word capital assets mean property held by the taxpayer (Tax Code Section 39). Documentary stamp tax is an excise tax levied on documents, instruments, loan agreements and paper evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or

To avoid or reduce territorial double taxation of the same income derived by the taxpayer, an agreement between two contracting countries called Double Taxation Agreement (DTA) is signed. It is also called Double Taxation Treaty, as it has the status of a ‘treaty’. Articles under the agreement cover various areas. While Article 7 of Malaysia’s double tax treaties denies Malaysia the right to tax business profits of an enterprise where the enterprise has no permanent establishment in Malaysia, this principle looks into a few essential issues.