Week 1 DQ 1
What is meant by the terms tax avoidance and tax evasion? Is there a difference between the two? Why should one be legal and the other illegal?
Week 1 DQ 2
A client comes to your tax firm. She asks you to research a tax issue and advise her on how to reduce her exposure to an IRS audit. What resources would you use in your research, and what would your advice be?
Week 2 DQ 1
Please select an exclusion from income. Explain the exclusion and its purpose. What do you think the congressional intent was for this exclusion?
Week 2 DQ 2
Why is the cash method generally used for computing taxable income? When would the accrual method be used, and why?
Week 3 DQ 1
Why do you think that mortgage interest and real estate taxes for a personal residence are tax deductible, but rent payments are not? Are rental payments for a business tax deductible?
Week 3 DQ 2
When an individual pays for business expenses, he or she needs to be careful not to mix the personal with the business. What are some expenses or areas that should be of a concern, where individuals need to be careful not to mix them?
Week 4 DQ 1
What expenditures are deductible for self-employed individuals but are not deductible for employees? Discuss why there would be this distinction.
Week 4 DQ 2
In order to take the home office deduction, there are various requirements that must be met. What are they, and why do you feel that they are in place? In addition, employees must meet an additional requirement. What is it, and why is it in place?
Week 5 DQ 1
What was the purpose of the AMT? Do you think that AMT currently promotes fairness?
Week 5 DQ 2
Why do you think a credit is given for some expenditures but not others? Is there an expenditure that you think merits credit status?
Week 6 DQ 1
What property exchanges are taxable? Why do you think they are taxable?
Week 6 DQ 2
What property exchanges are nontaxable? Why do you think they are nontaxable?
Week 7 DQ 1
What is the purpose behind congress’ taxing capital gains at a rate lower than ordinary income? Will this lower tax rate help to stimulate investment spending and the economy?
Week 7 DQ 2
What does “recapture” refer to? What is the effect of recapture? How do you treat recapture? At what rate would you tax the recapture (i.e., ordinary or capital gains)? Why?