ACCT 324 Federal Tax Accounting I All Discussions Week 1-7

ACCT 324 Federal Tax Accounting I All Discussions

 Week 1

Week 1 Discussion Question 1

What is meant by the terms tax avoidance and tax evasion? Is there a difference between the two? Why should one be legal and the other illegal? 

Week 1 Discussion Question 2

A client comes to your tax firm. She asks you to research a tax issue and advise her on how to reduce her exposure to an IRS audit. What resources would you use in your research, and what would your advice be? 

Week 2

Week 2 Discussion Question 1

Please select an exclusion from income. Explain the exclusion and its purpose. What do you think the congressional intent was for this exclusion? 

Week 2 Discussion Question 2

Why is the cash method generally used for computing taxable income? When would the accrual method be used, and why? 

Week 3

Week 3 Discussion Question

Why do you think that mortgage interest and real estate taxes for a personal residence are tax deductible, but rent payments are not? Are rental payments for a business tax deductible? 

Week 3 Discussion Question 2

When an individual pays for business expenses, he or she needs to be careful not to mix the personal with the business. What are some expenses or areas that should be of a concern, where individuals need to be careful not to mix them? 

Week 4

Week 4 Discussion Question 1

What expenditures are deductible for self-employed individuals but are not deductible for employees? Discuss why there would be this distinction. 

Week 4 Discussion Question 2

In order to take the home office deduction, there are various requirements that must be met. What are they, and why do you feel that they are in place? In addition, employees must meet an additional requirement. What is it, and why is it in place?

Week 5

Week 5 Discussion Question 1

What was the purpose of the AMT? Do you think that AMT currently promotes fairness? 

Week 5 Discussion Question 2

Why do you think a credit is given for some expenditures but not others? Is there an expenditure that you think merits credit status? 

 Week 6

Week 6 Discussion Questions

What property exchanges are taxable? Why do you think they are taxable? 

Week 6 Discussion Question 2

What property exchanges are nontaxable? Why do you think they are nontaxable? 

Week 7

Week 7 Discussion Question 1

What is the purpose behind congress’ taxing capital gains at a rate lower than ordinary income? Will this lower tax rate help to stimulate investment spending and the economy? 

Week 7 Discussion Question 2

What does "recapture" refer to? What is the effect of recapture? How do you treat recapture? At what rate would you tax the recapture (i.e., ordinary or capital gains)? Why?