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Jake (a calendar year taxpayer) reported the following transactions, all of which were properly included in a timely filed return. Gross sales S845,000 Cost of
Jake (a calendar year taxpayer) reported the following transactions, all of which were properly included in a timely filed return. Gross sales S845,000 Cost of sales (535,000) Gross profit $310,000 Business rental income $420,000 Less: rental expenses (133,700) Net rental income 286,300 Business expenses (600,000) Net loss (S3,700) a. Presuming the absence of fraud, S of an omission from gross income would trigger the six-year statute of limitations. b. As far as the six-year statute, would it matter if there had been net income instead of a net loss? Yes or no? c. If there is any fraud by Jake, there is (yeso) statute of limitations
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