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For your initial posting to this week's discussion, discuss whether the circumstances or statements are true or false, and explain your reasoning in the following

For your initial posting to this week's discussion, discuss whether the circumstances or statements are true or false, and explain your reasoning in the following two cases

  1. Individual S is the sole shareholder of Corporation Y. The corporation employs S’s college-aged granddaughter as secretary treasurer for the summer, paying her $25,000 for 3 months of work. If the Internal Revenue Service determines that the granddaughter is not a bona fide corporate employee and disallows the entire $25,000 salary deduction, the $25,000 payment could be reclassified as a dividend to the granddaughter
  2. Taxpayer T would like to shift some of his current year taxable income to an elderly aunt. T can accomplish this objective through the use of a $150,000 interest-free demand loan to his aunt.

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1 TRUE The standard deduction is available up to Rs 50000 in a financial year However you can claim ... blur-text-image

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