Itemized Deduction Research Paper

Section 152(a) provides that for a taxpayer to take a dependency exemption, the potential dependent must satisfy either the qualifying child requirement or the qualifying relative requirement. Section 152(b)(2) indicates that the taxpayer is not permitted a dependency exemption for a married dependent if the married individual files a joint return. Pursuant to section 152(c), the term “qualifying child” refers to an individual who has not furnished over one-half of his or her own support and who has not attained the age of 19 or who has not attained the age of 24, if a full-time student, as of the close of such calendar year. The term “qualifying relative” under section 152(d) includes, but is not limited to, an individual whose gross income is less than the exemption amount and to whom the taxpayer provides over-half of the total individual’s support for the calendar year in which such taxable year begins. Under Reg. Sec. 1.152 (a), support received from the taxpayer is compared to the entire amount of support which the potential dependent received from all sources, including support which the individual supplied himself. Support includes food, shelter, medical and dental care, education, recreation,

A medical expense does not have to relate to a particular ailment to be deductible.

Adrian is a salesperson who represents several wholesale companies. On January 2, 2008, she received by mail a commission check from Ace Distributors in the amount of $10,000 that was dated December 31, 2007. Adrian is concerned about the year in which the amount of $10,000 is taxable. Although the check is dated 2007, she contends that it would have been unreasonable for her to drive 100 miles (one way) to the Ace offices on the eve of a holiday to collect her check. Further, Adrian maintains that even if she had made the trip to collect the check, by the time she returned home, the bank would have closed and she could not have deposited the check until January.

People do not enjoy talking about taxes because they are too political, confusing, and depressing. It is no secret that the American tax code is a mess and something many economists describe as too broken to fix. Despite this, politicians have never stopped from trying to “fix” the code, yet they have had very little success. The U.S. Government’s tax code currently comprises “more than 67,000 pages of complexities” (Boortz, Linder, & Woodall 14). The Americans for Fair Taxation (AFFT) was founded in 1995 with one goal: create the simplest and best tax reform plan that would work in the modern market and economy. The AFFT’s best solution was a bill which they promptly called the FairTax.

Answer each of these questions, explaining the applicable rules and possibilities of each. (Points : 50)

Tax deductions reduce taxable income; their value thus depends on the taxpayer’s marginal tax rate, which rises with income. Tax credits directly reduce a person’s tax liability and hence have the same value for all taxpayers with tax liability at least equal to the credit. In addition, some credits are refundable; they are not limited by the taxpayer’s tax liability.

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

Ann paid $500 for her books and supplies and she incurred living expenses of $7,400.

There are two requirements for taxpayers to qualifies their expense as travel expenses deduction: First, the purpose of the trip must be connected with a trade or be employment related; Second, the taxpayer must be away from his tax home overnight or for a sufficient duration to require sleep or rest before returning home.

IRC Sec. 213(a) states that “there shall be allowed as a deduction the expenses paid

: Completed 12 principal NIEHS Administrative Officer Efficient Spending travel data calls and 16 Attachment G –Efficient Spending Exemptions- within extremely short deadlines. Most Attachment G’ with a tight deadline was linked to the Children’s Health Exposure Analysis Resource program referred to as CHEAR and the Big Data to Knowledge (BD2K) Program both programs have different CANS and initiatives requirements. All Efficient Spending Exemptions expectations were accomplished within specified deadlines for the Grants Management Branch composed of 10 employees and the Exposure, Response & Technology Branch consisting of seven individuals. Actions required to complete the task consist of writing and proofreading statement of purposes directly

Facts: Murray Taxpayer was previously employed by a company who was illegally dumping chemicals into a river. Murray had knowledge concerning these illegal activities of his employer and made an ethical decision to report this to the Environmental Protection Agency. Upon inspection, the Environmental Protection Agency determined that Murrays employer was in fact illegally dumping and was appropriately fined for the charges. Murray’s employer reacted to his whistleblowing by firing him and making deliberate efforts to prevent Murray from gaining employment elsewhere. Murray then sued his former employer for damaging

1. All distributions (excluding reasonable salary) to Paula and Mary will be taxed as dividends to them. And the corporation could not deduct this part of distribution.

In 2011, the standard deduction that was claimed by single taxpayers and married couples who filed separate tax returns increased from $5700 to $5800, a $100 increase. The amount of standard deduction for taxpayers who filed joint returns increased from $11400 to $11600, a $200 increase from the year before. Finally, heads of household also received an increase of $100 in standard deduction, from $8400 to $8500. IRS (2011) reports that that in 2011, single taxpayers and married individuals who filed separately had their basic reduction being $5,800. That amount was half of the deduction for surviving spouses and the spouses who filed jointly, $11,600. Heads of household had their deduction being $8,500,

You addressed the theory “what you pay for is what you get”. According to the article Health Insurance Coverage and Adverse Experiences With Physician Availability: United States, 2012 this theory is shown for the age group of 18-16 uninsured and persons on public insurance were a lot less likely to find health care than the people with private insurance. With the current Affordable Care Act do you see this trend counting, getting better or getting worse? (Gindi, Kirzinger & Cohen, 2013).