If they file separate tax returns (each files married filing separate), how much Harry report? How much does his wife report? Do youneed to know comumiy p law to do the tax return? ye income does you need to know community property III. Tax Year: 1. An individual (with a calendar tax year end of December 31,2017) owns stock in an S corporation (a pass-thru entity). She expects that she will be allocated (taxed on) $50,000 of the S corporation's current year income. Would she want the S corporation's taxable year to be a fiscal year ending January 2018, or the same year end as hers (December 31, 2017)? IV. Tax Accounting Methods ("When"): Answer the following Problems (1-4) assuming taxpayer uses the tax cash method. Then Answer them again assuming the taxpayer uses the tax accruel method Problem 1. You have a landscape business with a calendar year end (December 31, 2017). In September 2017, you agree to work for a client who will pay you $4,000 when the job is finished. 6 a. When do you report the gross income; (1) when you entered into the agreement, (2) when you finished the work and billed the client in November 2017, or (3) when the client paid you in January 2018? N you in December 2017, but you tell her to wait and pay you in January 2018 (constructive receipt)? b. What if you finished the work and billed the client in November 2017) the client comes in to pay Problem 2. Assume you enter into a contract where before you do any work, you and the client agree that the work will be finished in November 2017 and the payment will be due in January 2018. When do you have income if you follow the contract and do the work in November 2017 and get paid in (constructive receipt)? Inuo Problem 3. What if a client pays you a $4,000 advance payment in September 2017 (before any is done), and you start and complete the work in January 2018, when do you have income? was Problem 4. Same as Problem 3. except assume the $4,000 advance (received in September pre-paid rent which was earned in January 2018? In 11