552. CHAPTER 5GROSS INCOME: EXCLUSIONS Question MC #1 The taxpayer’s marginal tax bracket is 25%. Which would the taxpayer prefer?…
the best cabins available and may avail themselves of any and all of the ship’s recreation…
Allen received something of value from the casino. Under the broad concept of income, the airfare and hotel accommodations would be considered income. However, Allen could argue that the income should be matched with his $25,000 in gambling losses on the trip, and when the income and losses are combined, the net effect is an economic loss…
Does the operational cost for Alex Jones’ jet for the above three trips qualify to be deducted as a necessary or ordinary business expense incurred in conducting a trade or business under IRC Sec. 162?…
In the case Selfe v. United States, 778 F.2d769, the taxpayer established a line of credit in her own name, secured by…
Rod is employed as an auditor by a CPA firm. On most days, he commutes by auto from his home to the office (18 miles round trip). During one month, however, he has an extensive audit assignment closer to home. For this engagement, Rod drives directly from home to the client’s premises and back (30 miles round trip). How much, if any, of this mileage can Rod claim as a deduction?…
In conclusion, Charley Long’s meals and lodging expenses should be deducted as traveling expenses. The reason is that all the expenditure incurred in the business trip out of the principal post and all the cost is not in the personal purpose. Moreover, he needs a releasing from work and has a sleep for a safety driving after midnight. It is very dangerous to drive on the road for 5 hours at night. And it is necessary to have a meal outside to get the energy to work. Therefore, all the expenditure in this case should to be considered as traveling…
The Internal Revenue Code imposes a Federal tax on the taxable income of every corporation. Sec. 11(a). Section 61(a) specifies that gross income for purposes of calculating such taxable income means “all income from whatever source derived”. Encompassed within this broad pronouncement are all “undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.” Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 [47 AFTR 162] (1955). Stated otherwise, gross income includes earnings unaccompanied by an obligation to repay and without restriction as to their disposition. James v. United States, 366 U.S. 213, 219 [7AFTR 2d 1361] (1961). From the facts presented it seems that Peaceful enjoyed complete dominion over the prepaid funds. I find it significant that…
I SPOKE WITH PEACEFUL TAX PAYER ABOUT THE AUDIT NOTICE THE IRS HAD SENT. IT CONTENDS THAT THE AMOUNT PREPAID UNDER PEACEFUL’S PROGRAM CONSTITUTES PREPAID INCOME THAT MUST BE INCLUDED IN PEACEFUL’S INCOME (AND THEREFORE SUBJECT TO TAX) IN THE YEAR IN WHICH IT IS RECEIVED. THE TAX PAYER WANTED TO KNOW IF THE IRS FINDINGS WERE CORRECT.…
c. Green Thumb issues 40 shares of common stock to Paula plus a $100,000 ten-year bond bearing interest at 6% and 15 shares of common stock to Mary, plus a $100,000 ten-year bond bearing interest at 6%.…
(2) How much, if any, of Shaun 's $2,000 contribution for the right to purchase tickets is tax deductible?…
Conclusion: The $25,000 will be treated as self- employed income as well. John was awarded the 25,000 that paid up front expenses, so the number will cancel each other out.…
| Amanda should file her request as a separate return, and Head of household, so she is entitled to a personal exemption, standard deduction as a head of household and dependency exemption for Alex Jr. only.…
But U.S. frequent flier programs produced revenues estimated at 2.5 billion Euros (more than US$3 billion) and better per passenger results. 1 Revenues from non-ticket sources, which are called ancillary revenues, have become an important financial component for low cost carriers (LCCs) in Europe and throughout the world. Michael O'Leary, Chief Executive of Ryanair, Europe's largest LCC, wants to offer free airline tickets by replacing traditional ticket sales with revenues produced by ancillary activities.2 His statement reflects how Europe’s LCCs have morphed the Southwest Airlines model of providing overall value into an a la carte style of offering ultra-low fares and charging consumers for services such as checked baggage. Mr. O’Leary needs to add a frequent flier program if he wants to squeeze more revenue from non-traditional sources. IdeaWorks estimates Ryanair’s aggressive use of a la carte pricing generated ancillary revenues of €7.76 (US$9.77) per passenger, while United’s Mileage Plus frequent flier program posted amazing results of €9.40 (US$11.98) per passenger. Even US-based LCCs are realizing attractive ancillary revenues from their relatively young programs. For example, the co-branded credit card linked to Frontier’s EarlyReturns program contributed revenues of €19.6 million (US$25 million) during 2005. An IdeaWorks analysis reveals growing distinctions between the LCC model that is prevalent in the United States and that which is developing throughout the world. LCCs in the United States are realizing attractive revenue streams from the sale of miles or points to program partners. LCCs outside the USA have cultivated a fee-for-service strategy that is designed to maximize the revenue potential of each passenger by charging for services that US-based LCCs…
The trial flights are a good marketing strategy and considered a loss leader. The trial flights help the club to generate more income and a profit of around £10,000.00.This by product recoup the loss club makes on the overall operations. Although only a small number of these casual flyers bring about permanent memberships.…