1. Your brother is short on cash and cannot pay his rent this month. You pay his rent for him. Is this taxable income to your brother? Do you get a deduction?
2. Which of the following items would be excluded from income?
(a) $100 bill found under the sugar caddy at the restaurant
(b) Inheritance of a car from your grandmother valued at $5,000.
(c) Loan from your father-in-law to start your business,
(d) Child Support received totaling $16,500.
3. Shaun & Kayla earned the following in 2013: Interest on a Savings account of $36, Interest on a U.S. Series EE Savings Bond of $25, Interest on a CD that has not matured yet of $20. How much taxable interest income must they report on their 2013 tax return?
4. Explain what a Cafeteria Plan is hint: it has nothing to do with what you eat between classes
5. Explain the limitations placed on the deductibility of Business Gifts? What code section dictates this treatment?