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tax problems - discussions




Question;1. LO.1, 9 Sophia and Jacob are married and file a joint return. The return for 2012 included a Form 2106 for each of them. The return for 2013, however, included a Form 2106 and a Schedule C. In terms of employment status, what could have changed?2. LO.1, 9 Yolanda is employed but is not reimbursed by her employer for her job-related expenses. If Yolanda always claims the standard deduction, she can never deduct any of these expenses. Do you agree with this conclusion? Explain.3. LO.1 Mason performs services for Isabella. In determining whether Mason is an employee or an independent contractor, comment on the relevance of each of the factors listed below.a. Mason performs services only for Isabella and does not work for anyone else.b. Mason sets his own work schedule.c. Mason reports his job-related expenses on a Schedule C.d. Mason obtained his job skills from Isabella?s training program.e. Mason performs the services at Isabella?s business location.f. Mason is paid based on time worked rather than on task performed.4. LO.1 Bernard operates a hair styling salon as a sole proprietor. Because his shop has several extra workstations that are not being used, he is considering renting these to other stylists, but he wants to avoid any employer-employee relationship with them.Advise Bernard on the type of working arrangement he should set up to ensure that any new stylists will be classified as independent contractors and not as employees.5. LO.1, 11 In mid-2013, Madison goes to work for Knot Corporation. In January 2014, she receives a Form 1099 from Knot reflecting her classification as an independent contractor.Madison disagrees with this classification.a. Why does she disagree?b. Does Madison have any recourse on the issue of her employment status? Explain.6. LO.1 In terms of characteristics, how are statutory employees similar to common law employees? To independent contractors?7. LO.1 The IRS presumes that two types of workers should be classified as independent contractors. Who are these workers, and why is the automatic classification justified?8. LO.2 Milton is a resident of Mobile (AL) and is employed by Scaup Corporation.Because Scaup closed its Mobile office, Milton no longer has any nondeductible commuting expenses although he continues to work for Scaup. Explain why.9. LO.2 In 2011, Emma purchased an automobile, which she uses for both business and personal purposes. Although Emma does not keep records as to operating expenses (e.g., gas, oil, and repairs), she can prove the percentage of business use and the miles driven each year. In March 2013, Emma seeks your advice as to what income tax benefit, if any, she can derive from the use of her automobile. What would you suggest?10. LO.2, 3 Explain the difference between travel expenses and transportation expenses.11. LO.3 Lance, who practices law in New York City, leaves his office on Tuesday at 4:00 A.M., flies to Los Angeles, makes a court appearance at 1:00 P.M., and flies back toNew York that same day.a. Was Lance away from home for income tax purposes? Why or why not?b. What difference does it make?12. LO.3 The lodging expense of an employee who is not away from home overnight can never be deductible. Do you agree with this statement? Explain.13. LO.3 Dr. Werner is a full-time professor of accounting at Pelican University. During the year, he teaches continuing education programs for CPA groups in several cities. He also serves as an expert witness in numerous lawsuits involving accounting fraud. Comment on the possible tax treatment of Dr. Werner?s job-related expenses.14. LO.3 Bill and Jean Wilder attend a three-day seminar in Chicago on current developments in taxation. Bill is a partner in a law firm in Memphis specializing in tax practice, while his wife, Jean, is a paralegal with the same firm. Comment on the deductibility of the Wilders? expenses in attending the seminar.15. LO.3 Rick is scheduled to go to London on business and would like to do some sightseeing while there. A colleague advises him that to maximize his deductible expenses, he should plan the business and personal portions of the trip carefully to make effective use of weekends and holidays. What is meant by this advice?


Paper#39484 | Written in 18-Jul-2015

Price : $19