What is congresss rationale for depreciation


1) Explain the difference between refundable and non-refundable credits?

2) What is the purpose of the alternative minimum tax?

3) Mention and explain two differences between Child credit and Child/dependent care credits?

4) Discuss two differences between the Lifetime Learning tax credit and American Education Opportunity tax credit.

5)What is considered a capital asset for tax purposes?

6) Explain the difference between ordinary, capital, and Sec. 1231 assets. Why does it matter?

7) On December 15, 2012, Mark sold for $6,200 share of stock she had acquired for $XY,000 on November 18, 2011. On November 14, 2012, she sold for $YX,000 shares of stock she had acquired for $12,000 on October 14, 2011.

a. What was the amount and nature of Mark net gain/loss?

b. How much was included/deductible in 2012?

8) HTP Incorporated had a net long-term capital gain of $XY,000 and a net short-term capital loss of $75,000 in 2013. Discuss the tax consequences of these transactions.

9) Compare and contrast the similarities between start-up costs and organizational expenditures.

10) What is Congress's rationale for depreciation recapture?

11) What does mid-month convention mean?

12) Jane acquired a building on March 2, 1990, for $XY0,000.

a. What is the cost recovery for the building in 2015 if the building is classified as nonresidential real estate?

b. If the building is sold on October 30, 2015 for $YX0,000, what is the cost recovery deduction?

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Accounting Basics: What is congresss rationale for depreciation
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