Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Chapter 5, Problem 42P
To determine

State the proper tax treatment for each of the following expenses.

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State whether each of the following payments is a tax. Explain your answers. To incorporate his business, Alex pays the state of Texas a $2,000 incorpora tion fee. The city paves a road and assesses each property owner on the road $4,000 for his or her share of the cost. The city of Asheville charges each residence in the city $10 per month to pick up the trash. Rory pays $450 of income tax to the state of California. Lanny is fined $45 for exceeding the speed limit.
. Taxpayer has just accepted a job as chief counselor at a large daycare camp operated by a local nonprofit tax-exempt organization. To encourage Taxpayer to spend as much time as possible on the camp premises, Taxpayer will receive a fixed salary and free meals on the premises while on duty. In addition, Taxpayer is offered a choice of a monetary fixed monthly housing allowance or free rent if Taxpayer opts to reside in a cabin on-site. Taxpayer choses to live in the cabin. What amount must Taxpayer report as gross income on Form 1040 for the year? A. Salary, meals while on duty, and rent value of the cabin B. Salary and meals while on duty only C. Salary only D. Salary and rent value of the cabin only E. None of the above answers
Advise Cheryl of her tax consequences from the following transactions:(a) Donation of $300 to the building fund of her local public primary school.(b) Donation of $50 to her local public library (as a result she does not need to paymembership fees of $20 that year to borrow books from the library).(c) Payment of $700 membership fees to the real estate agents' association.Cheryl is a professional real estate agent but she has not been working as onefor the last two years following the birth of her child. However, she maintainsher membership of the association as she intends to go back to work one day   PLEASE PUT 3 REFERENCES

Chapter 5 Solutions

Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)

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