Assignment

Your assignment is to provide a written answer to the Tax Research Problem assigned from Chapters of the South-Western Text. FOR ELECTRONIC SUBMISSIONS, PLEASE MAKE EVERY EFFORT TO SUBMIT, IF POSSIBLE, EITHER A SINGLE PDF OR A SINGLE WORD DOCUMENT OF THE ENTIRE PROJECT. THANK YOU.

Format

Your answer should be no more than 2-3 pages (approximately 250 words per page) typed in a word processing program. The answer should be structured in memorandum form as follows. (There are similar examples in Chapter 2)

Intro to Taxation Problem

RESEARCH PROBLEM (from South-Western Federal Taxation) Facts: George Johnson drove his car out onto a frozen lake and parked the car in order to watch an ice boat race. The ice weakened and his car fell through the ice and was submerged in the lake. Issues: Can Taxpayer George Johnson claim a casualty loss deduction for damage to his automobile sustained when the auto fell through a frozen lake? Does the auto falling through the ice constitute a casualty under the federal income tax law? Would the loss be deductible as a personal or business casualty in 2022 under current tax law if the car fell through the ice in 2022? (A Revenue Ruling is the likely the authority needed.)