AC 630 TAX CODE RESEARCH ASSIGNMENT Due 10/5/20 by Spm Central Standard Time 100 Points (10% offelgrade) Late assignments not accepted Answer the questions below with the appropriate IRC formatted structure in a Word document and upload your document in Canvas by the due date listed above. Number your responses on your Word document to correspond with appropriate questions below. Assignments will be graded for reasonable accuracy and completeness. 1. Tomsik contacts you and indicates that he expects to incur a substantial net capital loss for calendar-year 2019 and wonders what the treatment of the carryforwards will be in future years. Which code section and subsection provides for the treatment of an individual's capital loss carryforward ? Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a), IRC12(a). IRCG12A(a). IRC 12AA(a). IRC5123(a). 2. At the end of the current tax year Lisa owned 100 shares of VOL stock that she had owned for three years with a basis of $8,000. She sold the stock on December 27th of the current year for $5,000 and realized a $3,000 loss. She repurchased 100 shares of the stock two days later. What code section and subsection provides the authority for whether Lisa will be able to deduct this loss on her current tax return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown ist below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12[a), IRC912A(a). IRC$12AA(a). IRC$123(a). IRC91234(a), IRC91234(a), IRC91234A(a), and IRC51234A-5(a) 3. Earlier this year, Investment, Inc. sold one of its stock investments and realized a loss. What code section and subsection provide the authority regarding the treatment by corporate taxpayers of this realized loss? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a). IRC 12(a). IRC 12A(a). IRC812AA(a). IRC 123/01 IRC6123A(a). IRC$1234(a), IRC91234A[a), and RC91234A-5(a) 4. Honestown Securities, a company with a March 31 year end deals in copper and gold and derivatives associated with those commodities. In the past, Honestown has elected to value its stock- based securities at the fair market value of the stock as of March 31 and would like to do the same with its copper and gold. Which section and subsection of the Internal Revenue Code allows Honestown to make this election? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC$12(a), IRC 12A(a). IRC 12AA(a), IRC3123(a). IRC91234(a). IRC$1234(a). IRC91234A(a). and IRC91234A-5(a) 5. The Shaws are considering donating a painting to a state university for display in the university's library. The Shaws acquired the painting six months ago for $90.000 and believe that the painting is now worth $105,000. Which code section and subsection determine the amount of charitable contribution to which the Shaws will be entitled if they donate the painting at the present time? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC312(a), IRC912A(a). IRC512AA(a), IRC9123A(a), IRC91234(a). IRC31234Ala), and IRC91234A-5(a) 6. The Dex Home Improvement General Partnership is planning to adopt a fiscal year ending September 30, while Brinks (a 20% partner) uses the calendar year as his taxable year. What Internal Revenue Code section and subsection describes how Brinks should determine the amount of income and other partnership items from the fiscal-year partnership that must be reported on Brinks's 2019 calendar-year tax return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(), IRC512(a). IRC 12A(a). IRC 12AA(a) IRC91234(a). IRC91234(a), IRC1234Ala), and IRC91234A-5(a) 7. Adjustments must be made to regular taxable income in order to compute an individuals alternative minimum tax-able income (AMTI). Which Internal Revenue Code section and subsection provide the adjustments that only apply to individuals when computing the alternative minimum tax? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdownlist below. Examples of correctly formatted IRC responses are IRC51(a). IRC512(a). IRC512A(a). IRC512AA(a). IRC9123(a). IRC5123A(a), IRC$1234(a). IRC51234Ala), and IRC$1234A-5(a) 8. Dividends received from taxable domestic corporations are generally eligible for a dividends received deduction. What Internal Revenue Code section and subsection provides a special restriction on the dividends-received deduction if the stock investment is financed with debt? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12/a). IRC$12A(a), IRC 12AA(a), IRC$123A(a), IRC91234(a), IRC91234A/a), and IRC 1234A-5(a) 9. Corporation RST owns 18% of the stock of Corporation DEF and receives a $10,000 divided from DEF this year. What Internal Revenue Code section and subsection provides the authority for RST to take a deduction related to this dividend? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a), IRC12(a), IRC312A(a), IRC 12AA(a), IRC$123A(). IRC91234(a), IRC91234A(a), and IRC91234A-5(a) 10. Aviator's gains from the sale of stock investments totaled $20,000, while its losses from the sale of other stock investments totaled $30,000. What Internal Revenue Code section and subsection limits the deduction of a corporation's capital losses? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below Examples of correctly formatted IRC responses are IRC51(a), IRC$12/a). IRC512A(a), IRC512AA(a). IRC 123(a). IRC5123A(a), IRC91234(a), IRC91234Aa), and IRC91234A-5(a) 11. What Internal Revenue Code section and subsection limits a corporation's deduction for charitable contributions to a percentage of its taxable income before specified deductions? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC$12(a), IRC512A(a), IRCG12AA(a). IRC9123(a). IRC6123A(a). IRC$1234(a). IRC$1234A/a), and IRC$1234A-5(a) 12. Mr. Cole is considering purchasing a new principal residence for $1,500,000, and intends to finance the purchase with a mortgage in the amount of $1,150,000. Which code section and subsection provide the maximum amount of mortgage indebtedness on which the interest expense will be deductible? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a). IRC 12(a), IRC312A(a). IRC 12AA(a). IRC 1234(a). IRC91234(a). IRC$1234A(a), and IRCR1234A-Sta) 13. Glen Moore inherited stock from his mother, Ruth. She had died on February 1, 2019, when the stock had a fair market value of $150,000. Ruth had acquired the stock on May 15, 2017, at a cost of $120,000. Ruth's estate was too small to require the filing of a federal estate tax retum. Moore wants to know how much gross income he must report because of the receipt of his inheritance in 2019. Which code section and subsection provides the rule for determining whether Moore's inheritance must be included in his gross income? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC812(a), IRC812A(a), IRC812AA). IRC$123(a) IRC 123A(a). IRC91234(a), IRC91234A(a), and IRC91234A-5a) 14. Marsha's father recently passed away, and she is curious as to how much the unified credit is that is a reduction to the estate tax liability. Indicate the Internal Revenue Code section and subsection that provides the authority that the unified credit can be used to reduce the estate tax. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a), IRC812(a), IRC912A(a), IRC 121(a). IRC$123(a). IRC$123A(a). IRC$1234(a). IRC$1234A(a), and IRC$1234A-5(a) 15. During the year, a client purchased a gift for a spouse who became a citizen of the United States in the year subsequent to the gift. The gift was land on which the client intends to build a house. The client knows that there is some form of gift tax deduction allowed for gifts, but has further questions concerning how the gift affects the client and the client's spouse. Which section and subsection of the Internal Revenue Code defines the applicability of the marital deduction for gift tax in this situation Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC 12(a), IRC312A(a), IRC512AA(a). IRC$123(a) IRC$123A(a), IRC91234(a). IRC$1234A(a), and IRC$1234A-Sta) 16. In 2019, Madison is considering making a proportionate non-liquidating distribution of shares of stock that it owns in CDE Corporation to its partners. Indicate the Internal Revenue Code section and subsection that describes how to determine the basis that the partners will have for the CDE stock that they receive. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a file from the dropdown list below Examples of correctly formatted IRC responses are IRC51(a). IRC 12(a). IRC312A(a). IRC312AA(2) IRC91234(a), IRC31234(a). IRC31234A(a), and RC91234A-Sta) 17. What section and subsection of the Internal Revenue Code set forth the limitation on the deduction of corporation losses by a shareholder? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a file from the dropdown list below. Examples of correctly formatted IRC responses are IRC 1(a). IRC912(a). IRCS12A(a). IRC 12AA(a) IRC5123(a). IRC9123A(a), IRC91234(a). IRC91234A(a), and IRC91234A-Sta) 18. Jeff and Annette have two dependent children. Their wages were very low this year because Jeff was unemployed for most of the year. They hope to qualify for the earned income credit Indicate the Internal Revenue Code Section and subsection that provides the authority to claim the eamed income tax credit Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(), IRC312[a). IRCF12A(a). IRC312AA). IRC91234(a). IRC91234(a). IRC91234A(a). and IRC1234A-S(a) 19. Dan King contacts you and indicates that he is considering incorporating a business by transferring investment property with a fair market value of $500,000 and an adjusted basis of $150,000. In the exchange, King would receive all of the corporation's stock Assuming King's transfer qualifies under Sec. 351 as a transfer to a corporation controlled by the transferor, what Internal Revenue Code section and subsection determine whether King's holding period for the stock received will include his holding period for the property transferred? Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list. Select a file from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC512(a). IRC512A(a). IRC512AA). IRCA123ta). IDCRARIA IDORA DRASSANDRA 20. Mr. Green paid $5,000 to an unrelated babysitter for the care of his child while he worked. Which Internal Revenue Code section and subsection provide the maximum amount of employment-related child care expenses that qualify for a tax credit? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown ist below. Examples of correctly formatted IRC responses are IRC51(a), IRC912(a). IRC512A(a). IRC512AA(a). IRC 123(a). IRC9123A(a), IRC91234(a), IRC91234A(a), and IRC91234A-5(a) 21. Giants, Inc. has net capital losses of ($100.000) this year. Indicate the internal Revenue Code Section and subsection that provides the limitation on the deduction of net capital losses for corporations Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC$12(a), IRC312A(a). IRC 12AA(a). IRC91234(a). IRC31234(a). IRC31234A(a), and IROS1234A-5(a) IRC5123(a). 22. Mr. Perry is the sole shareholder of Arrow, Inc., a calendar-year corporation. Due to the pass- through of losses in previous years, Perry's aggregate basis for the Arrow stock and debt that he owns has been reduced to zero. For its calendar year 2019, Arrow expects to incur another large loss which Perry wishes to deduct on his 2019 Form 1040 tax return. What Internal Revenue Code section and subsection limits a shareholder's deduction of an corporation's losses to the shareholder's basis for stock and debt? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12(a). IRC512A(a). IRC 12AA(a). IRC3123A(a). IRC$1234(a). IRCR1234A(a), and IRC91234A-5(a) 23. Cola, Inc. purchased all of its personalty (equipment) in the fourth quarter of its tax year. Provide the IRC Section and subsection that indicates the convention that applies when computing MACRS depreciation in this situation. Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list Select a title from the dropdown fist below. Examples of correctly formatted IRC responses are IRC$1(a), IRC312(a). IRC512A(a). IRC12AA(a), IRC123(a). IRC9123A(a). IRC91234(a). IRC91234A(a), and IRC91234A-5(a) 23. Cola, Inc. purchased all of its personalty (equipment) in the fourth quarter of its tax year. Provide the IRC Section and subsection that indicates the convention that applies when computing MACRS depreciation in this situation. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC 12[a). IRC 12A(a). RC912AA). IRC$123(a), IRC9123A(a). IRC91234(a). IRC$1234A(a), and IRC1234A-5(a) 24. Merill recently realized that she failed to report $20,000 of income on last year's last return. She is concerned that she may be subject to a substantial understatement penalty but is not sure how to determine this. Indicate the Internal Revenue Code section and subsection that provides the rules for the applicability of the substantial understatement penalty Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC512(a), IRC312A(a). IRC312AA(a). IRC91234(a), IRCS 1234(a). IRC91234A(a)and IRCs 1234A-5(a) 25. The trustee of a tax-exempt organization would like to know if the organization is required to file an annual information return. What section and subsection of the Internal Revenue Code provides the requirements for tax-exempt organizations to file an annual information return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a), IRC12(a), IRC512A(a). IRC 12AA(a). IRC$123(a). IRC9123A(a), IRC91234(a), IRC 1234A(a), and IRC91234A-5(a) AC 630 TAX CODE RESEARCH ASSIGNMENT Due 10/5/20 by Spm Central Standard Time 100 Points (10% offelgrade) Late assignments not accepted Answer the questions below with the appropriate IRC formatted structure in a Word document and upload your document in Canvas by the due date listed above. Number your responses on your Word document to correspond with appropriate questions below. Assignments will be graded for reasonable accuracy and completeness. 1. Tomsik contacts you and indicates that he expects to incur a substantial net capital loss for calendar-year 2019 and wonders what the treatment of the carryforwards will be in future years. Which code section and subsection provides for the treatment of an individual's capital loss carryforward ? Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a), IRC12(a). IRCG12A(a). IRC 12AA(a). IRC5123(a). 2. At the end of the current tax year Lisa owned 100 shares of VOL stock that she had owned for three years with a basis of $8,000. She sold the stock on December 27th of the current year for $5,000 and realized a $3,000 loss. She repurchased 100 shares of the stock two days later. What code section and subsection provides the authority for whether Lisa will be able to deduct this loss on her current tax return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown ist below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12[a), IRC912A(a). IRC$12AA(a). IRC$123(a). IRC91234(a), IRC91234(a), IRC91234A(a), and IRC51234A-5(a) 3. Earlier this year, Investment, Inc. sold one of its stock investments and realized a loss. What code section and subsection provide the authority regarding the treatment by corporate taxpayers of this realized loss? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a). IRC 12(a). IRC 12A(a). IRC812AA(a). IRC 123/01 IRC6123A(a). IRC$1234(a), IRC91234A[a), and RC91234A-5(a) 4. Honestown Securities, a company with a March 31 year end deals in copper and gold and derivatives associated with those commodities. In the past, Honestown has elected to value its stock- based securities at the fair market value of the stock as of March 31 and would like to do the same with its copper and gold. Which section and subsection of the Internal Revenue Code allows Honestown to make this election? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC$12(a), IRC 12A(a). IRC 12AA(a), IRC3123(a). IRC91234(a). IRC$1234(a). IRC91234A(a). and IRC91234A-5(a) 5. The Shaws are considering donating a painting to a state university for display in the university's library. The Shaws acquired the painting six months ago for $90.000 and believe that the painting is now worth $105,000. Which code section and subsection determine the amount of charitable contribution to which the Shaws will be entitled if they donate the painting at the present time? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC312(a), IRC912A(a). IRC512AA(a), IRC9123A(a), IRC91234(a). IRC31234Ala), and IRC91234A-5(a) 6. The Dex Home Improvement General Partnership is planning to adopt a fiscal year ending September 30, while Brinks (a 20% partner) uses the calendar year as his taxable year. What Internal Revenue Code section and subsection describes how Brinks should determine the amount of income and other partnership items from the fiscal-year partnership that must be reported on Brinks's 2019 calendar-year tax return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(), IRC512(a). IRC 12A(a). IRC 12AA(a) IRC91234(a). IRC91234(a), IRC1234Ala), and IRC91234A-5(a) 7. Adjustments must be made to regular taxable income in order to compute an individuals alternative minimum tax-able income (AMTI). Which Internal Revenue Code section and subsection provide the adjustments that only apply to individuals when computing the alternative minimum tax? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdownlist below. Examples of correctly formatted IRC responses are IRC51(a). IRC512(a). IRC512A(a). IRC512AA(a). IRC9123(a). IRC5123A(a), IRC$1234(a). IRC51234Ala), and IRC$1234A-5(a) 8. Dividends received from taxable domestic corporations are generally eligible for a dividends received deduction. What Internal Revenue Code section and subsection provides a special restriction on the dividends-received deduction if the stock investment is financed with debt? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12/a). IRC$12A(a), IRC 12AA(a), IRC$123A(a), IRC91234(a), IRC91234A/a), and IRC 1234A-5(a) 9. Corporation RST owns 18% of the stock of Corporation DEF and receives a $10,000 divided from DEF this year. What Internal Revenue Code section and subsection provides the authority for RST to take a deduction related to this dividend? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a), IRC12(a), IRC312A(a), IRC 12AA(a), IRC$123A(). IRC91234(a), IRC91234A(a), and IRC91234A-5(a) 10. Aviator's gains from the sale of stock investments totaled $20,000, while its losses from the sale of other stock investments totaled $30,000. What Internal Revenue Code section and subsection limits the deduction of a corporation's capital losses? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below Examples of correctly formatted IRC responses are IRC51(a), IRC$12/a). IRC512A(a), IRC512AA(a). IRC 123(a). IRC5123A(a), IRC91234(a), IRC91234Aa), and IRC91234A-5(a) 11. What Internal Revenue Code section and subsection limits a corporation's deduction for charitable contributions to a percentage of its taxable income before specified deductions? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC$12(a), IRC512A(a), IRCG12AA(a). IRC9123(a). IRC6123A(a). IRC$1234(a). IRC$1234A/a), and IRC$1234A-5(a) 12. Mr. Cole is considering purchasing a new principal residence for $1,500,000, and intends to finance the purchase with a mortgage in the amount of $1,150,000. Which code section and subsection provide the maximum amount of mortgage indebtedness on which the interest expense will be deductible? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a). IRC 12(a), IRC312A(a). IRC 12AA(a). IRC 1234(a). IRC91234(a). IRC$1234A(a), and IRCR1234A-Sta) 13. Glen Moore inherited stock from his mother, Ruth. She had died on February 1, 2019, when the stock had a fair market value of $150,000. Ruth had acquired the stock on May 15, 2017, at a cost of $120,000. Ruth's estate was too small to require the filing of a federal estate tax retum. Moore wants to know how much gross income he must report because of the receipt of his inheritance in 2019. Which code section and subsection provides the rule for determining whether Moore's inheritance must be included in his gross income? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC812(a), IRC812A(a), IRC812AA). IRC$123(a) IRC 123A(a). IRC91234(a), IRC91234A(a), and IRC91234A-5a) 14. Marsha's father recently passed away, and she is curious as to how much the unified credit is that is a reduction to the estate tax liability. Indicate the Internal Revenue Code section and subsection that provides the authority that the unified credit can be used to reduce the estate tax. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list. Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC31(a), IRC812(a), IRC912A(a), IRC 121(a). IRC$123(a). IRC$123A(a). IRC$1234(a). IRC$1234A(a), and IRC$1234A-5(a) 15. During the year, a client purchased a gift for a spouse who became a citizen of the United States in the year subsequent to the gift. The gift was land on which the client intends to build a house. The client knows that there is some form of gift tax deduction allowed for gifts, but has further questions concerning how the gift affects the client and the client's spouse. Which section and subsection of the Internal Revenue Code defines the applicability of the marital deduction for gift tax in this situation Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC 12(a), IRC312A(a), IRC512AA(a). IRC$123(a) IRC$123A(a), IRC91234(a). IRC$1234A(a), and IRC$1234A-Sta) 16. In 2019, Madison is considering making a proportionate non-liquidating distribution of shares of stock that it owns in CDE Corporation to its partners. Indicate the Internal Revenue Code section and subsection that describes how to determine the basis that the partners will have for the CDE stock that they receive. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a file from the dropdown list below Examples of correctly formatted IRC responses are IRC51(a). IRC 12(a). IRC312A(a). IRC312AA(2) IRC91234(a), IRC31234(a). IRC31234A(a), and RC91234A-Sta) 17. What section and subsection of the Internal Revenue Code set forth the limitation on the deduction of corporation losses by a shareholder? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a file from the dropdown list below. Examples of correctly formatted IRC responses are IRC 1(a). IRC912(a). IRCS12A(a). IRC 12AA(a) IRC5123(a). IRC9123A(a), IRC91234(a). IRC91234A(a), and IRC91234A-Sta) 18. Jeff and Annette have two dependent children. Their wages were very low this year because Jeff was unemployed for most of the year. They hope to qualify for the earned income credit Indicate the Internal Revenue Code Section and subsection that provides the authority to claim the eamed income tax credit Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(), IRC312[a). IRCF12A(a). IRC312AA). IRC91234(a). IRC91234(a). IRC91234A(a). and IRC1234A-S(a) 19. Dan King contacts you and indicates that he is considering incorporating a business by transferring investment property with a fair market value of $500,000 and an adjusted basis of $150,000. In the exchange, King would receive all of the corporation's stock Assuming King's transfer qualifies under Sec. 351 as a transfer to a corporation controlled by the transferor, what Internal Revenue Code section and subsection determine whether King's holding period for the stock received will include his holding period for the property transferred? Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list. Select a file from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a). IRC512(a). IRC512A(a). IRC512AA). IRCA123ta). IDCRARIA IDORA DRASSANDRA 20. Mr. Green paid $5,000 to an unrelated babysitter for the care of his child while he worked. Which Internal Revenue Code section and subsection provide the maximum amount of employment-related child care expenses that qualify for a tax credit? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown ist below. Examples of correctly formatted IRC responses are IRC51(a), IRC912(a). IRC512A(a). IRC512AA(a). IRC 123(a). IRC9123A(a), IRC91234(a), IRC91234A(a), and IRC91234A-5(a) 21. Giants, Inc. has net capital losses of ($100.000) this year. Indicate the internal Revenue Code Section and subsection that provides the limitation on the deduction of net capital losses for corporations Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC$12(a), IRC312A(a). IRC 12AA(a). IRC91234(a). IRC31234(a). IRC31234A(a), and IROS1234A-5(a) IRC5123(a). 22. Mr. Perry is the sole shareholder of Arrow, Inc., a calendar-year corporation. Due to the pass- through of losses in previous years, Perry's aggregate basis for the Arrow stock and debt that he owns has been reduced to zero. For its calendar year 2019, Arrow expects to incur another large loss which Perry wishes to deduct on his 2019 Form 1040 tax return. What Internal Revenue Code section and subsection limits a shareholder's deduction of an corporation's losses to the shareholder's basis for stock and debt? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC 12(a). IRC512A(a). IRC 12AA(a). IRC3123A(a). IRC$1234(a). IRCR1234A(a), and IRC91234A-5(a) 23. Cola, Inc. purchased all of its personalty (equipment) in the fourth quarter of its tax year. Provide the IRC Section and subsection that indicates the convention that applies when computing MACRS depreciation in this situation. Enter your response in the answer fields below. Guidance on correctly structuring your response Choose a title from the list Select a title from the dropdown fist below. Examples of correctly formatted IRC responses are IRC$1(a), IRC312(a). IRC512A(a). IRC12AA(a), IRC123(a). IRC9123A(a). IRC91234(a). IRC91234A(a), and IRC91234A-5(a) 23. Cola, Inc. purchased all of its personalty (equipment) in the fourth quarter of its tax year. Provide the IRC Section and subsection that indicates the convention that applies when computing MACRS depreciation in this situation. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC51(a), IRC 12[a). IRC 12A(a). RC912AA). IRC$123(a), IRC9123A(a). IRC91234(a). IRC$1234A(a), and IRC1234A-5(a) 24. Merill recently realized that she failed to report $20,000 of income on last year's last return. She is concerned that she may be subject to a substantial understatement penalty but is not sure how to determine this. Indicate the Internal Revenue Code section and subsection that provides the rules for the applicability of the substantial understatement penalty Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC$1(a), IRC512(a), IRC312A(a). IRC312AA(a). IRC91234(a), IRCS 1234(a). IRC91234A(a)and IRCs 1234A-5(a) 25. The trustee of a tax-exempt organization would like to know if the organization is required to file an annual information return. What section and subsection of the Internal Revenue Code provides the requirements for tax-exempt organizations to file an annual information return? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields. Choose a title from the list Select a title from the dropdown list below. Examples of correctly formatted IRC responses are IRC1(a), IRC12(a), IRC512A(a). IRC 12AA(a). IRC$123(a). IRC9123A(a), IRC91234(a), IRC 1234A(a), and IRC91234A-5(a)
