Fin 321 - Chapter 2: Research Problem 2

Mrs. Tschetschot works as a database project manager, and was also a professional tournament poker player in 2000. She then claimed a net loss from her tournament poker activity as business losses on her Schedule C. The commissioner determined that this deduction related to the tournament poker should be subject to the limitation provided in Code §165(d) as an itemized deduction, to the extent of the Mrs. Tschetschot’s winnings. Based on that, the commissioner assessed a deficiency of income tax as well as an accuracy-related penalty under Code §6662(a).

This Comprehensive Problem is to acquaint you with the content of the 2012 financial statements

Why? The owners capitalized and amortized 50 percent of the purchase price ($12 million) simply because the tax rules allowed it; therefore the

After thoroughly researching taxable and nontaxable income, the Pontiac G6 sedans awarded to Oprah’s television audience would have been subject to federal taxation and included in their gross income. The Code of Federal

Met: Cash deposit was received on December 13, 2015 and there is no indication that Barbor Furniture Ltd. will be unable to pay for the remaining balance.

Working under the assumption that Adrian is a cash basis taxpayer, one can refer to Treasury Regulation sec. 1451-1(a), which states that under the cash receipts and disbursements method of accounting, such an amount is includible in gross income when actually or constructively received.

The Tax Court, per Judge Ruwe, issued an order on May 8, 1995, denying Pope & Talbot 's motion and granting the IRS 's motion. The court 's opinion characterized the issue before it as one of "first impression," and found resort to the legislative history of the statute necessary since the court was unable to "achieve...certainty based on the language of the statute." After reviewing the legislative history of IRC Sec. 311, the court observed the following: It is apparent that the purpose underlying IRC Sec. 311(d) was to tax the appreciation in value that occurred while the corporation held the property and to prevent a corporation from avoiding tax on the inherent gain by distributing such property to its shareholders...It follows that we must focus on the value of the Washington properties as owned by petitioner and value them as if petitioner had sold them at fair market value at the time of distribution.

In 2013 Marianne sold land, building and equipment with a combined basis of $150,000 to an unrelated third party and in return received an installment note of $80,000 per year for five years. Of the $250,000 gain on sale, $150,000 was classified as Section 1245 gain and the remaining $100,000 was Section 1231 gain. In 2013, Marianne had a capital loss carryover of $60,000, $50,000 of which she used to offset her Section 1231 gain; she recognized no Section 1245 gain. The following year she recognized $40,000 of 1245 gain and $10,000 of Section 1231 gain which she promptly offset with the last $10,000 of the capital loss carryover. In 2015, she recognized $50,000 Section 1245 gain and no Section 1231 gain.

Once a gain or loss is recognized, a taxpayer must determine how the recognized gain or loss affects the taxpayer’s tax liability. The character depends on a combination of two factors: purpose or use of the asset and holding period. The purpose or use of the asset is important because the law does not treat all assets equally. The general use categories are: (1) trade or business, (2) for the production of income (rental activities), (3) investment, and (4) personal. Based on these criteria, we can categorize an asset into one of three groups: (1) ordinary, (2) capital, or (3) section 1231. Characterizing the gain or loss is important because all gains and losses are not equal. Ordinary gains and losses are taxed at ordinary income rates, regardless of the holding

According to the IRC §61(a)(1), “Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the

Was there a valid offer made when Debbie put an ad in newspaper stating her company Party line will rent tables and chairs for the low price of

Sonja is seriously injured in an auto accident. After six months, she is still unable to return to work. She has no income from her job, and the insurance premium payments are financially burdensome. In this case Sonja has an ordinary life insurance with the waiver-of-premium attached so after six months all premiums would be waived if Sonja is totally disabled. Under some policies, a retroactive refund of the premium paid during the first six months would be paid. (Rejda, George, McNamara, 2014).

The event started with a cocktail hour where people got to take pictures with UT's mascot - Bevo. Then, it wrapped up with a live auction.

This coupon idea that you discuss in your forum post is an excellent idea for many sports organizations to implement into their promotional schedule for their season ticket holders. The coupon idea is already a commonplace promotion for many retailers to give to their customers to keep them coming back to their store. The only question that I would pose about this scenario, what type of promotion would you run alongside this for fans/consumers who were not season ticket holders? However, as you stated, the idea of a coupon book for season ticket holders is a great marketing technique for the team. They do not lose out on as much money as they would have, mostly due to an individual’s ability to lose something. You mention that you ran

It is reported that almost 50% of retailers and 48% of manufacturers use rebates programs as part of their customer loyalty and promotions mix (Group, 2011). To be successful, rebates often call for custom-made