(1) What are the key facts in each of the 3 problems?

(2) What is the general issue to be addressed?

(3) What keywords would you use to research this question?

(4) Use online tax research tools to answer the question.

(5) What important information would you include in a memo/letter to the client to communicate the results of your research?

Please type your answers below. Be concise but thorough enough.

#2: Latrell recently used his Delta Skymiles to purchase a free roundtrip ticket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Latrell's business travel as a CPA. Latrell's employer paid for his business trips, and he was not taxed on the travel reimbursement.

How much income, if any, does Latrell have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel?

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