ACCT 2001 Lecture Notes - Lecture 6: Community Property, Pro Rata, Qualified Dividend
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ACCT 2001 Full Course Notes
Verified Note
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Document Summary
Chapter 8: tax computations and credits: overview, overview, in chapter 4, we went through the overall taxable income formula in general terms. We also discuss exclusions and deferrals: realization and recognition of income (pp. 5-2 through 5-9, what is included in gross income, irc 61, tps recognize income when three conditions are met. John owns a home that he rented to melanie on january 1, 2017 for the year. Rather than pay cash each month, melanie gave john stock worth ,600. How much income must john and melanie recognize if: Scenario 1: melanie purchased the stock for ,000 on 1/1/2014. Scenario 2: melanie purchased the stock for ,600 on 1/1/2014: what is the tax benefit rule (recovery of amounts previously deducted), this can seem confusing! When applying the tax benefit rule, you often must consider both the standard deduction and itemized deductions. Hodor prepays all of his haircuts for the next 2 years.
