MBA 712 - Week Two Gross Income Notes
, (Tax Accounting
(Texas Rule) Methods) Cash received
Texas, Idaho and Louisiana.
Applies to the state
of... Name Three
What is cash method?
States.
(Tax Accounting Methods) Transactions is consummated, right of claim to the income
(Texas Rule) True
arises and services are rendered.
What is Accrual Method?
If spouses filed separate
(Economic Benefit Doctrine) Cash or Bonus
returns, the income would be
shared between them. True or
Examples
False? of compensation
granted or paid to the
_________is include in gross income, on Compensation, gifts
individual for services
the other hand is excluded.
Gifts are made from detached True
Name Two Examples
and disinterested generosity.
(Economic Benefit Doctrine) Compensation or Profit Sharing
True or False?
Income is derived in return for True
Examples benefit.
economic of compensation
True or
granted
False? or paid to the
individual for services
John offers Billy $10,000 if he taxable income
quits smoking and drinking
Namethe
over thenext
otherfive
twoyears.
Examples
He
does, and uponBenefit
The Economic attaining the is
Doctrine True
age of 30,doctrine
a judicial he pays that
him $10,000.
Is the $10,000IRC
supplements received by Billy
61. True or
taxable
False income or a gift?
About Prizes and
(Constructive Awards
Receipt Doctrine) they
True are generally taxable based on fair market value at time of
receipt.
Prizes/Awards
When is income are 1. Connected with the fields of science, charity, or the arts.
taxable -
excludable if allis of the
absolute right regarded as
following occurs:
constructively received 2. Involuntary selection process (i.e., through no effort of recipient)
income. True or False?
Name the first
Assignment oftwo...
Income Doctrine another individual
3. No future services required of recipient.
Prizes/Awards are
excludable if all of
income has been the
transferred to
following occurs:
_________________________prior 4. Assigned to a governmental agency.
to recognition.
Name
What isthe last threeProperty?
Community Assigned
Whenever
5. to a tax-exempt
property charitable
acquired after organization
marriage.
Employee Achievement
What is the Awards,
California Rule? Achievement awards are
Income from separate taxable.
property remains separate.
what is an example?
(California Rule) California, Arizona and Nevada.
, (Tax Accounting
(Texas Rule) Methods) Cash received
Texas, Idaho and Louisiana.
Applies to the state
of... Name Three
What is cash method?
States.
(Tax Accounting Methods) Transactions is consummated, right of claim to the income
(Texas Rule) True
arises and services are rendered.
What is Accrual Method?
If spouses filed separate
(Economic Benefit Doctrine) Cash or Bonus
returns, the income would be
shared between them. True or
Examples
False? of compensation
granted or paid to the
_________is include in gross income, on Compensation, gifts
individual for services
the other hand is excluded.
Gifts are made from detached True
Name Two Examples
and disinterested generosity.
(Economic Benefit Doctrine) Compensation or Profit Sharing
True or False?
Income is derived in return for True
Examples benefit.
economic of compensation
True or
granted
False? or paid to the
individual for services
John offers Billy $10,000 if he taxable income
quits smoking and drinking
Namethe
over thenext
otherfive
twoyears.
Examples
He
does, and uponBenefit
The Economic attaining the is
Doctrine True
age of 30,doctrine
a judicial he pays that
him $10,000.
Is the $10,000IRC
supplements received by Billy
61. True or
taxable
False income or a gift?
About Prizes and
(Constructive Awards
Receipt Doctrine) they
True are generally taxable based on fair market value at time of
receipt.
Prizes/Awards
When is income are 1. Connected with the fields of science, charity, or the arts.
taxable -
excludable if allis of the
absolute right regarded as
following occurs:
constructively received 2. Involuntary selection process (i.e., through no effort of recipient)
income. True or False?
Name the first
Assignment oftwo...
Income Doctrine another individual
3. No future services required of recipient.
Prizes/Awards are
excludable if all of
income has been the
transferred to
following occurs:
_________________________prior 4. Assigned to a governmental agency.
to recognition.
Name
What isthe last threeProperty?
Community Assigned
Whenever
5. to a tax-exempt
property charitable
acquired after organization
marriage.
Employee Achievement
What is the Awards,
California Rule? Achievement awards are
Income from separate taxable.
property remains separate.
what is an example?
(California Rule) California, Arizona and Nevada.
