We spent quite a bit of time this term learning about deductions.

/in /by

We spent quite a bit of time this term learning about deductions. One of the important distinctions between

various types of deductions that we examined was the distinction between for AGI and from AGI deductions. Explain how the names for these two types of deductions developed, as well as the fundamental differences between the two types of deductions and the general types of deductions that fall within each category. In particular, focus on the different tax consequences that each might have, any applicable limitations, and the significance of being classified as a from AGI deduction instead of for AGI.

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

You are chief counsel to the chairman of the Joint Committee on Taxation

/in /by

You are chief counsel to the chairman of the Joint Committee on Taxation, the body primarily responsible for

identifying taxation issues and their consequences as Congress seeks to implement a comprehensive and coherent tax policy. Currently, the United States is in a bit of an economic slump. Corporate earnings reports are relatively weak; the stock market is about 25% off of its 5-year highs, and tax revenues are down. Largely as a result of the last issue, the government finds itself operating under an annual deficit, and the national debt hovers around $7,000,000,000. Interest rates, however, remain at historic lows. The president has suggested a multiple-pronged attack to revitalize the economy. First, he has proposed going to a flat tax rather than the current progressive tax system. (No recommendation regarding what that flat tax rate should be has been made, although the president has indicated that he would not be likely to accept any figure above 15%.) As part of this plan, however, the president has proposed eliminating many of the current individual income tax deductions, including (I) the home mortgage interest deduction and (II) the property tax deduction. He has also proposed eliminating the deduction for dependents. Furthermore, he has proposed eliminating the child care and earned income credits to help make up for any potential shortfalls in revenue.

The chairman has asked you for your analysis of these provisions. Please prepare a memorandum outlining your thoughts on each, including, but not necessarily limited to

(I) the effect of each recommendation on revenues and deficits, both in the short and long run;

(II) the effect of each recommendation on the economy;

(III) the relative effects of each recommendation on different socioeconomic groups of taxpayers;

(IV) the relative fairness of each recommended change; and

(V) your conclusion regarding whether any or all should be adopted.

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

As a newly minted CPA, you obtain your first significant position as a tax professional:

/in /by

As a newly minted CPA, you obtain your first significant position as a tax professional: senior tax accountant for

one of the offices of a regional accounting firm. Of course, the firm runs a notice of your hiring in the local newspaper. A few days later, the editor of the newspaper calls you and asks if you might be interested in writing a monthly column for the newspaper on tax issues. Figuring that it would be a good way to get your name out in the community as an expert in the field (and a little free advertising to boot!), you tell him that you would be more than happy to do so. “Great! ” he says. “By the way, I have already blocked out space for this column in the next edition of the paper. Is there any way that you can get me your article by the end of the day today?” After you commit to doing so, he also proceeds to tell you that you will not be paid for these articles. “I figure that it is just a sort of public service that you could offer to the community. I am sure you understand.” (And so it begins…get used to a lot of this.) You spend the next 10 minutes thinking about what you could discuss in your first article. You would like to shake people up a little bit, and perhaps challenge their opinions about some issues of tax law. That way, you could perhaps build up some interest in your column, which, as you know, will be difficult to achieve under the best of circumstances! (After all, who wants to read newspaper articles about taxes?)

Finally, you decide on a topic: You will argue to the readers that the federal income tax should be abolished and replaced with a national sales tax. Required: Write an article arguing this position. You may or may not agree with this proposition. However, based on the materials covered in this course and the discussions that have occurred in the Discussion areas, you should be able to articulate a cogent, persuasive argument in support of this proposition. In particular, you should focus on reference theories, concepts, justifications, and anticipated economic, social, and/or other benefits that would result from such a system. To the extent that you think strong contrary arguments could be made, consider raising those contrary arguments and then persuasively arguing against them.

Your answer to this question will be evaluated based on the thoroughness, professionalism, substance, and persuasiveness of your argument.

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

Elaine Constantine, who is single, sells her current personal residence with adjustable basis of $170,000

/in /by

Elaine Constantine, who is single, sells her current personal residence with adjustable basis of $170,000 for

$455,000. She has owned and lived in the house for over 25 years. Her selling expenses are $25,000.

(a): What is Elaine’s realized and recognized gain?

(b): Explain the meaning of the terms:

i:          Adjusted basis

ii:         Realized gain

iii:         Amount realized or gain

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"