Week 7 Research Project (Set #1) DeVry University Acct 429 TAX RESEARCH MEMORANDUM ASSIGNMENT 2 It appears as though a couple of your clients have encountered an unfortunate development in their financial situation. Cindy and Ralph Edmonds own TidyCo., Inc. TidyCo, in turn, owns and operates several coin Laundromats
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September 21, 2013 TAX FILE MEMORANDUM FROM Latisha Gooley SUBJECT Peaceful Pastures Funeral Home, Incorporated prepaid income for services. Today I spoke with the owners of Peaceful Pastures Funeral Home Incorporated’s owners, with respect to their July 28, 2013 letter requesting tax assistance. Peaceful wishes to know if they could include their prepaid income in the year that the services were rendered. FACTS Peaceful Pastures is an accrual basis taxpayer who provides a full line of prepaid
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TAXPAYER ------------------------------------------------- HEADQUARTER CHANGE Facts Company X, a calendar-year corporation, currently owns the ten-story building where they are headquartered. Recently, Company X decided it would be in their best interest to relocate their headquarters. As a result Company X has identified two properties that are more suitable but whose fair market values slightly exceed that of the current ten-story building: 1. Single-story building on a large, attractive
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therefore subject to tax) in the year in which it’s received. Conclusion: Peaceful should pay the audit based on the facts. The IRS is correct according to the tax code and laws. Analysis: Peaceful receive prepay from their customers for funeral goods and service, so Peaceful have to pay taxes on the prepaid sales. According to The Strategic CFO, prepaid income tax is a form of prepaid expense. The most common reason why prepayment on income taxes occurs is due to over-estimation of tax deposits. In
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February 5, 2013 TAX FILE MEMORANDUM To : Prof. C. Cruz From : Vidia Mamesah Subject: Research Problem 1 Murray Today, I spoke with Mr. Murray with respect to his letter regarding tax assistance. He wants to know that his recent award for damages to his personal and professional reputation is taxable. Mr. Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Mr. Murray’s employer was fined. In
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Tax Research Memorandum Peaceful Pastures Funeral Homes, Inc. Prepared by: May 25, 2014 May 25, 2014 TAX FILE MEMORANDUM FROM SUBJECT Peaceful Pastures Funeral Home, Inc. Peaceful Pastures Funeral Home, Inc. has contacted me for advice in regards to an audit notice rendered to them by the IRS. The incorporated funeral home wants to know if the IRS is correct when stating that Peaceful’s program has prepaid income that must be included in the company’s income and is subject to tax. FACTS
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Facts Mr. Smith lives in his principle residence in Indianapolis. The present balance on his home mortgage that was incurred after October 13, 1987 in acquisition and secured by such residence is $300,000. Mr. Smith has no other mortgages and no other residence. He is planning to take out a loan of $240,000 to purchase a condo, close to Northwestern, for his daughters to live and planning to sell the condo when the girls graduate from Northwestern University. The loan of 240,000 will be secured
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additional tax planning advice to ask of you. Role After reviewing John and Jane Smith’s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax perspective on their issues. Prepare a three page memo (at least 300 words per page) to John and Jane Smith addressing the issues presented. Prepare a three page memo (at least 300 words per page) to John and Jane Smith addressing whether the issues presented above: 1. John Smith tax issues: 1
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Standard Federal Tax Reporter (2014), Sec. 109. IMPROVEMENTS BY LESSEE ON LESSOR'S PROPERTY Click to open document in a browser Gross income does not include income (other than rent) derived by a lessor of real property on the termination of a lease, representing the value of such property attributable to buildings erected or other improvements made by the lessee. Federal Tax Regulations, Regulation, §1.109-1., Internal Revenue Service, Exclusion from gross income of lessor of real property
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regarding the benefits and feasibility of allowing your daughter to be classified as a qualified child of your eldest son for this tax year. My conclusion is based upon the facts as provided by you at the Chamber of Commerce meeting on Wednesday, September 26, 2012. FACTS You are legally married to Mary Dewey and reside in the same abode. Both you and Mary file your income tax returns jointly as married. You and Mary are anticipating an approximate Adjusted Gross Income (AGI) of $400,000 this year
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