ACC4407 Financial Accounting FALL,2014
TAXATION INSTRUCTIONS FOR RESEARCHPROJECT
- Find information on topic from text as much as possible.
- Use other sources for additional research: Internal Revenue Code and Regulations Court cases
Articles or other publications on topic
Be sure to properly cite your sources from your (Google) searches
- Based on your research, determine any and all potential answers to the issue.
- Be sure to provide the basis for your solution
- Present the best solution based on your research. Document your conclusion
You are to present your solution to the class as if it were a client to whom you were presenting the
results of your research. Use Power Point or other appropriate presentation media. Hand in a hard copy of your slides and cites before your presentation.
First, present the problem, all potential solutions and your recommended solution based on your research. The presentation should take eight to ten minutes.
The grade will be based on the quality of your research, the quality of your presentation (do not read from the screen or papers although notes are helpful).
Ruby incurred substantial medical expenses ($32,000) and real estate taxes on her residence ($8,000). Because she did not have the funds to pay these expenses, she asked her mother, Susan, to help her out. Susan made the payments directly to Ruby’s creditors.
On her 2012 Federal income tax return, Ruby deducted $24,500 ($32,000- 7.5% of$ 100,000
AGI) of medical expenses and $8,000 of real estate taxes. The IRS disallowed these itemized deductions on Ruby’s tax return. According to its position, because Ruby did not actually pay these expenses, she is not entitled to any deductions.
Evaluate the positions taken by Ruby and by the IRS.