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Discuss the probable justification for each of the following aspects of the tax law: a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b. Bribes to public officials are not deductible. c. Net operating losses of a...

Emily lives in Texas and sues in the Tax Court on Issue A. The Fifth Circuit Court of Appeals is the appellate court of appropriate jurisdiction. It has already decided, in a case involving similar facts but a different taxpayer, that Issue A should be resolved...

Early in December 2012, Fred and Megan review their financial and tax situation with their son, Sam, and daughter in law, Dana, who live with them. Fred and Megan are in the 28% tax bracket in 2012. Both Sam and Dana are age 21. Sam, a student at a nearby university,...

A tax form completion simulation requires the candidate to fill out a portion of a tax form. For example, Red Company is a limited liability company (LLC) for tax purposes. Complete the income section of the IRS Form 1065 for Red Company using the values found and...

Beth received the following amounts during the year. Salary $30,000 Interest on savings account 900 Gift from her aunt 10,000 Prize won in state lottery 1,000 Alimony from ex husband 12,000 Child support from ex husband 6,000 Damages for injury in auto accident 25,000...

In each of the following independent situations, indicate whether the transfer is subject to the Federal gift tax. a. Asa contributes to his mayor’s reelection campaign fund. The mayor has promised to try to get some of Asa’s property rezoned from residential to...

Abby dies in the current year. In determining her Federal estate tax liability, comment on the relevance of each of the following. a. Abby made taxable gifts in 1975 and 2008. b. Abby held a life estate in a trust created by her late husband. c. State death taxes paid...

In each of the following independent situations, indicate whether the alternate valuation date can be elected. Explain why or why not. Assume that all deaths occur in 2012.   Value of Gross Estate Estate Tax Liability Decedent Date ofDeath Six MonthsLater Date...

Carl made the following transfers during 2012. • Transferred $900,000 in cash and securities to a revocable trust, life estate to himself and remainder interest to his three adult children by a former wife. • In consideration of their upcoming marriage, gave Lindsey...