Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This year Jim provided lawn-mowing services to other club members. Jim received the following from the barter club. Determine the amount, if any, Jim should include in his gross income in each of the following situations:
a- Jim received $283 of car repair services from another member of the club.
b. Jim received a $555 credit that gave him the option of receiving a season pass at a local ski resort from another member of the club. However, he forgot to request the pass by the end of the ski season and his credit expired.
c. Jim received a $460 credit that can only be applied for goods or services from club members next year.
The amount, if any, Jim should include in his gross income in each of the following situations are as follows :-
a) Jim received $283 of car repair services from another member of the club :-
Amount included in Gross Income is $283.
b) Jim received a $555 credit that gave him the option of receiving a seasonpass at a local ski resort from another member of the club. However, he forgot to request the pass by the end of the ski season and his credit expired:-
.Amount included in Gross Income$555
The issue is whether the "credit" represents a valuable right. Because theright could be redeemed for property worth $555, then under constructive receipt Jim should recognize income of $555.
c)Jim received a $460 credit that can only be applied for goods or servicesfrom club members next year.:-
Amount included in Gross Income$0.
If a barter credit can only be redeemed for future services, then thetaxpayer could argue that no realization has yet occurred. But, it would beincluded in his gross income next year when the credit becomes a valuable right
Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between...
The PTL CLub - Jim and Tammy Faye Bakker I need help with the discussion questions listed at the bottom... THE PTL CLUB Jim and Tammy Faye Bakker launched the PTL Club in January 1974. This show was one of the most successful television ministries for more than a decade. The broadcast of the PTL Club utilized almost 200 television stations to reach a national audience of approximately 12 million viewers. PTL stood for both “Praise the Lord” and “People...
Fraud at Berry, CPA’s BERRY, CERTIFIED PUBLIC ACCOUNTANTS Brief History of the Firm In 1999, John Berry graduated from college with an accounting degree. After 10 years at an international accounting firm, John decided to start his firm, Berry, CPA’s. The firm, located in Oakwood, caters to local clients; specifically, John and his staff of four professionals specialize in non-public companies. The majority of the services provided by Berry, CPA’s are tax planning and preparation; however, the firm also performs...