ACC 421 - Federal Income Taxation
Chapter 8
1. Discuss whether property that is classified as personal use is subject to cost recovery.
4. Identify the relevant tax issues for Henry.
19. Explain how the § 179 limited expensing deduction affects the computation of MACRS cost recovery.
Chapter 9
4. Advise Bernard on the type of working arrangement he should set up to ensure that any new stylists will be classified as independent contractors and not as employees.
18. Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree.
a. Is the cost of this education deductible to her?
b. If so, what limitations are imposed on the deduction?
48. Charles has AGI of $94,000 during the year and the following expenses related to his employment:
Lodging while in travel status $5,000
Meals during travel 4,000
Business transportation 6,000
Entertainment of clients 3,800
Professional dues and subscriptions 800
Charles is reimbursed $14,000 under his employer's accountable plan. What are his deductions for and from AGI?
Chapter 10
21. Identify the tax issues relevant to William's decision.
25. Reba made the following payments on behalf of Lawrence:
Room at Lakeside $11,200
Meals for Lawrence at Lakeside 2,200
Lakeside doctor and nurse fees 1,700
Cable and TV service for room 380
Total $15,280
Disregarding the 10% of AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?