Tax Research Paper

The pool cost the petitioner over $19,000, and we cannot accept his contention that such amount was spent primarily for therapy for his leg in view of the limited need for such therapy and the alternatives which were then available.

An investment in a tax-exempt (municipal) bond with an interest rate of 8 percent is preferable to an investment in a taxable (corporate) bond with an interest rate of 10 percent.

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.

AmeriSouth argued that cost-segregation study allocates $65,381 of Garden House's depreciable basis to “site preparation and earthwork,” depreciable over 15 years as a land improvement is allowable because it is a “site development,” but nowhere does it describe what work is included in this category. On the other hand, the Commissioner's expert claims that work papers show the expenses relate to the initial clearing and grubbing (i.e., tree removal) of the land which occurred before the apartments' construction in 1970.

A 1099 is an important document that must be considered when a company employees independent contractors throughout the year. This form is similar to a W2, which reports wages earned by an employee. However, this is the form that is used for contractors that are not employed by the employee and who had more than $600 in payments from the company over the course of the year.

1 Area used regularly and exclusively for business, regularly for daycare, or for storage of

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

Modify the language of the trust instrument so as to lower the entity’s Federal income tax.

1. For the Tax year 2004, is SK eligible to switch from the accrual to cash method of accounting under Rev. Proc. 2001-10?

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

The congressional proposed tax changes will adversely affect the U.S. middle class. According to Pew Research, which claims to obtain its data through non-partisan demographic research and public opinion polling, the American middle class, defined as those making two-thirds to double the median income, makes up about half the population. Further information in this paper is obtained from reliable sources such as the New York Times and the Washington Post, which are typically regarded as center to left, As well as right-leaning sources such as Forbes magazine, whose chief editor, Steve Forbes, is a major Republican. The Congressional Budget Office and the US Census Bureau also supply reliable, researched data, and both Time Inc, Money, and

Paula Green, a U.S citizen and our client, is preparing to expand her business into landscaping field. Before the expansion, Paula already has already been operating the Green Thumb Nursery whose total assets with a $260,000 adjusted basis and a $500,000 FMV. To avoid the risk of paying unlimited debt, Paula plans to change business form from sole proprietorship into corporation. And Mary Brown, a U.S citizen and the other client, would like to invest $250,000 into this corporation.

In this composition, we will be discussing two topics that go hand in hand when it is dealt with in tax accounting. To fully understand the scope of this article, passive activity is defined by the IRS as “any rental activity or any business in which the taxpayer gains income but does not materially participate in the activity”(IRS). Examples of passive activities can include equipment leasing and real estate leasing, in contrast to salaries, wages which are generally considered non-passive activities. As the article “Skip the dorm, buy your kid a condo” states, there are tax benefits when renting a property, but now individuals have exploited loopholes in the tax code that can be controversial and even illegal.

As a new employee in the financial reporting unit the task is to evaluate the relevant disclosures of the company’s latest annual report in accordance to the Income Tax requirements as per AASB 112.