"Accounting 305 Federal Taxation 2010 Review Questions"
Federal Personal Income Tax Fall 2010 David I. Kempler It is imperative that you read the applicable provisions of the Internal Revenue Code (the "Code") and the Income Tax Regulations ("Regulations") that are assigned for each class. Many cases in the book have been changed by subsequent legislation. In addition to the material listed below, there may be more cases and IRS pronouncements assigned during the semester so please refer to Blackboard on a regular basis. Also, please stay at least 35 pages ahead even if we do not cover all of the material in a given assignment. If you have any questions concerning the class please contact me. FIRST CLASS ASSIGNMENT Introduction Klein, Bankman, Shaviro and Stark 15th edition ("Klein et al.") pp. 1-46. SECOND CLASS ASSIGNMENT Constructive Receipt Doctrine; Cash Equivalency Doctrine Fringe Benefits; Valuation Klein et al., pp. 276-283; 47-77 Code: Sections 119, 106, 125, and 132 Regulations: Sections 1.451-2;1.61-2, and 1.119-1 THIRD CLASS ASSIGNMENT Windfalls and Gifts Klein et al., pp. 77-111 Code: Sections, 74, 102 and 117 FOURTH CLASS ASSIGNMENT Gifts (cont.) Transfers at Death Recovery of Capital; Annuities Klein, et al. pp. 111-138 Code: Sections 102, 1014, 101(a), 72(a-c) FIFTH CLASS ASSIGNMENT Annualization Concept: Claim of Right Doctrine Tax Benefit Doctrine Recoveries from Injuries Cancellation of Indebtedness Income Klein et al. pp.138-174 Code: Sections 1341,111,104, and 108(a) and (d) Other: Marrita Murphy v. IRS , 493 F.3d 170 (D.C. Cir. 2007) SIXTH CLASS ASSIGNMENT Cancellation of Indebtedness Income (Cont.) Illegal Income Municipal Bond Interest Sale of Principal Residence Klein et al. pp.174-209 Code: Sections 1001, 103, and 121. SEVENTH CLASS ASSIGNMENT Timing of Recognition of Gains and Losses Calculation of Gains and Losses Klein et al. pp.211-245 Code: Sections 305(a), 307, 109. 165(a) and 1001(a). EIGHTH CLASS ASSIGNMENT Nonrecognition Transactions in General Like Kind Exchanges Constructive Sales Original Issue Discount Open Transactions Installment Sales Klein et al. pp. 246-276 Code: Sections 1031(a)-(d), 165(a)-(g), and 453(a)-(d). Other: Jordan Marsh Co. v. Comm'r, 269 F.2d 453 (2d Cir. 1959) NINTH CLASS ASSIGNMENT Deferred compensation Qualified Plans Stock Options Klein et al. pp.283-310 Code: Sections 83 (important) and 422 Other: United States v. Drescher, 179 F.2d 863 (2d.Cir. 1950) cert. denied 340 U.S. 821 (1950) TENTH CLASS ASSIGNMENT Divorce and Marriage Tax Issues Cash v. Accrual methods of Accounting Klein et al., pp.310-350 Casualty Losses Medical Expenses Code: Sections 1041, 71, 446 and 461 ELEVENTH CLASS ASSIGNMENT Personal Deductions Casualty Losses Medical Expenses Klein et al., pp.351-380 Code: Sections 165(c)(3) and 213 TWELFTH CLASS ASSIGNMENT Charitable Contributions Interest Taxes Dependency Exemptions Klein et al., pp.380-418 Code: Sections 170 (a)-(d), 501(c)(3), and 164 THIRTEENTH CLASS ASSIGNMENT Personal v. Business Deductions Home Offices Vacation Homes Klein et al. pp.419-452 Code: Sections 162(a), 183 and 280A FOURTEENTH CLASS ASSIGNMENT Travel and Entertainment Expenses Child Care Expenses Commuting Expenses Klein et al., pp.452-500 Code: Sections 162, 274 and 21 FIFTEENTH CLASS ASSIGNMENT Legal Expenses Educational Expenses Current Deductions v. Capital Expenditures Klein et al., pp.500-531 Code: Sections 212, 263, and 263A(skim) Regulations: Section 1.162-5 SIXTEENTH CLASS ASSIGNMENT Current Deductions v. Capital Expenditures (cont.) "Ordinary and Necessary" Expenses Inventory Accounting Illegal Payments Klein et al., pp.531-565 Code: Sections 162(a),(c),(f) and (g), and 263(a) SEVENTEENTH CLASS ASSIGNMENT Depreciation, Depletion and Amortization Tax Shelters Klein et al. pp. 565-608 Code: Sections 168(a)-(e); 611 and 469(a)-(e) and (g). Other: Frank Lyon v. United States, 435 U.S. 561 (1978) EIGHTEENTH CLASS ASSIGNMENT Sale and Leaseback Alternative Minimum Tax Tax Shelters Revisited Splitting of Income Klein et al. pp.608-637 Code: Sections 55 and 57 NINETEENTH CLASS ASSIGNMENT Assignment of Income Taxation of Trusts Klein et al. pp. 637-669 Code: Sections 671-678 (mainly the general rules of each section) TWENTIETH CLASS ASSIGNMENT: Income Splitting through Partnerships and Corporations Capital Gains And Losses Klein et al. pp. 669-701 Code: Section 1221 TWENTY FIRST CLASS ASSIGNMENT: Capital Gains and Losses Property Held "Primarily for Sale" to Customers Klein et al., pp.701-731 Code: Section 1221 TWENTY SECOND CLASS ASSIGNMENT: Exceptions from Capital Gains Klein et al., pp.731-759 Code: Section 1221 TWENTY THIRD CLASS ASSIGNMENT Contractual Rights Other Capital Gain Issues Klein et al., pp.759-791 Code: Sections 1221 and 1231 TWENTY FOURTH CLASS ASSIGNMENT Review #357944