LO.6 Discuss the probable justification for each of the following aspects of the tax law. a. Prepaid

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LO.6 Discuss the probable justification for each of the following aspects of the tax law.

a. Prepaid income is taxed to the recipient in the year received and not in the year it is earned.

b. A taxpayer that sells property on an installment basis can recognize gain on the sale over the period the payments are received.

c. Every year the tax brackets and the amounts of the standard deduction and dependency exemptions are adjusted by the IRS.

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South Western Federal Taxation 2011 Taxation Of Business Entities

ISBN: 9780538498616

14th Edition

Authors: James E. Smith, William A. Raabe, David M. Maloney

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