Question
Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine? A. A corporation paying its shareholders a $20,000
Which of the following is more likely to receive IRS scrutiny under the assignment of income doctrine?
A. A corporation paying its shareholders a $20,000 dividend.
B. None of the choices are correct.
C. A cash-basis business delaying billing its customers until after year end.
D. A parent employing her child in the family business.
E. A taxpayer gifting stock to his children.
This year, Betty, a single tax payer, sold her home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. She owned and lived in the home for 20 years. How much of the gain is included in gross income?
A. $550,000
B. $300,000
C. $250,000
D. $50,000
E. None
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