PLEASE HELP ME WITH THESE TAX ISSUES:

Issue Recognition Problems

Identify the tax issue or issues suggested by the following situations, and state each issue.

1. A local government levies an annual real property tax on the personal residence located at 123 Maple Drive. This tax is assessed on a calendar-year basis, and the homeowner must pay the tax before December 31. In November, Mr. and Mrs. J received the annual tax bill for $2,900. The couple purchased the home on October 6.

2. Company F operates in a jurisdiction that levies real property tax but no personal property tax. This year, the company spent $6 million to add an exterior lighting system and security fences to the parking lot adjacent to its corporate headquarters.

3. Company B, which has offices in six states, owns an airplane that company executives use to travel from office to office. When the plane is not in use, it is stored in a hangar located in a jurisdiction that doesnt levy a personal property tax on business tangibles. When the plane is in use, it is stored on a temporary basis in hangars located in jurisdictions that tax business tangibles.

4. For the past 22 years, Mrs. O contributed part of her salary to a retirement plan sponsored by her corporate employer. Under federal law, Mrs. O did not pay tax on the income she contributed. She will, however, pay federal income tax on the distributions from the plan when she retires. Mrs. O has resided in State A for her entire life. Because State As personal income tax is based on taxable income for federal purposes, Mrs. O never paid State A tax on her retirement contributions. This year, Mrs. O retires and moves to State K, which has no personal income tax.

5. Business Q orders $500,000 of office furniture from Vendor V, which ships the furniture by rail from its manufacturing facility in State V to Business Qs corporate headquarters in State Q. State V imposes a 6.5 percent sales tax, while State Q imposes only a 4 percent sales tax.