Mr. TL was a contestant on a game show and won a vacuum cleaner with a retail price of $365. Three months later, he sold the unused appliance in a garage sale for $275.
Answer to relevant QuestionsMrs. N, who is a self-employed author, paid $3,200 for a new computer system. She uses the system to write her books, and her two children use it for their schoolwork. Ms. JL is a successful attorney in the 39.6 percent marginal tax bracket. During the past several years, she provided legal services to her great uncle, who is 78 years old and in failing health. Although the uncle offered ...Discuss the burden of proof as it relates to the penalties for: a. Negligence. b. Civil fraud. c. Criminal fraud. Mrs. NM received a letter from the IRS asking her to submit written substantiation of a $1,500 charitable contribution deduction. Discuss the probable tax consequences to Mrs. NM if: a. She sends the IRS copies of her ...Mr. and Mrs. Boyd Knevel use a ﬁscal year ending July 31 as the taxable year for ﬁling their joint Form 1040. a. What is the last date on which the Knevels can apply for an automatic extension of time to ﬁle their ...
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