Question

Instructions: Review the Checkpoint Quick Reference Guide and User Guide. Perform your tax
research utilizing Checkpoint for each of the exercises. See Chapter 2 for guidance.

1) 20 points.
Give the title and brief description (no more than two sentences) of each of the
following Internal Revenue Code Sections:
a. Sec. 24
b. Sec. 41
c. Sec. 61
d. Sec. 62
e. Sec. 63
f. Sec. 64
g. Sec. 74
h. Sec. 151
i. Sec. 152
j. Sec. 162
k. Sec. 167
l. Sec. 168
m. Sec. 170
n. Sec. 212
o. Sec. 213
p. Sec. 215
q. Sec. 262
r. Sec. 274
s. Sec. 1221
t. Sec. 1231

2) 5 points.
a. Give the title and state the general rules for Treasury Regulation
1.401(k)-1.
b. Give the title of Treasury Regulation 1.501(c)(3)-1. Within this section,
only cite the section for “Exempt Purposes” and list the organizations
that may be exempt.

3) 5 points.
Find the court decision located at 52-1 USTC 9343.
a. Give the case name.
b. What court heard the case?
c. When was the case decided?
d. Give a brief description of this case and what was the judge’s opinion?

4) 5 points.
Find the court decision located at 1 AFTR2d 1158.
a. Give the case name.
b. What court heard the case?
c. When was the case decided?
d. What is the disposition of the case?
e. Briefly explain the subject matter of the case.

5) 5 points.
Research the following case. Give the citation, date of decision or date issued,
tax year(s), disposition and subject matter.
a. Thor Power Tool Co. v. Comm. (Supreme Court decision)

Answer 1

to 4 elta + Answer (2) (6) Title : Organizations organized and operated, fox for publica Dolely literary or educational purposes for the prevention of crielty ナ to children animals be exempt tion it 요 for OY charitable Exempt Purposes :- organisation y may, organized and operated exclusively organiza of following purposes : religions, su entific and organisation is fox puposer unless it to operates public than private interest t (تا not organized an seives rather Answer 3 :- La HAMLETT VS COMMISSIONER Answer 4 - (9) COMMISSIONER V SULLIVAN Answer si-a) 439 u.s. gga (1978) Citations 에 99 S.Ct. 793; 58.1.Ed.2d 785 785

Dt. Pg.: 5 Zelta 5 Date of Decision :- January 16, 1979 deduction for loss should Matter : - Subject Matter be allowed Tax Year - 1978 - 79

DL. Pg Delta (4) Answa :- meens qualifying child not (a) Sec. 24 : Child Tax Credit The tum qualifying child oli the tax payer who has attained age (6) Sec. 41 1- 20 percent of the amounts paid incurred the taxpayer in carrying trade business any taxable year energy research consortium, (c) Sec. 61 :- income from whatever sowice derived including fees, commission Oy gross income Income OY (d) Sec. 62 :- Adjusted Cross which attributable trade business carried by taxpayer (e) Sec. 63 :- Txable income income defined. Tem taxable. income income the deductions allowed minus . gross & Sec. 64 :- of property ang gain from Sec. 64 :- Ordinary income defined. "Ordine "Oxeliñany income any exchange sale ag) Sec. 74 :- Prires and awaids amounts Gross income recewed pries includes awards . and

DI. Pg. (6) Sec. 151 - Allowance 2 elta Exemptions of Deductions for Personali is Sec. 152 :- for Dependent. Dependent meens (9) qualifying child or (6) qualifying relative OY year in trade ΟΥ reasonable allowance and wear © tead cost to straight lin methol j Sec. 162 :- paid ordinary and necessary expenses incurred during the taxable carrying any business, (k) Sec. 167 :- prope prop provides depreciation deduction for the exhaustion of property. [) il) Sec. 168 :- Accelerated applicable convention switching recovery system, the [(m) Sec. 17o :-. Charitable contributions and to gifts. 2. Sec. 212 - deduction the ordinary and necessary expenses paid year. (6) Sec. 213 :- deduction for expenses paid during year, compensated for by insurance medical the expenses 7.5% of adjusted gross eht + all incurred during لاو taxable not extent exceed gross incom,

Dr. Pg. divorce o Oy ( Sec 274 :- Entertainment 3 elta o lps See 215 - generally effective for any divorce seperation Offrument olq) Sec. 262 :- dis allows deductions for personal living Jamily expenses, amusement Recreation qualified tamportation fringes (s) Sec. by the taxpayer capital asset" property held taxpayee's trade (t) Sec. 1231 - gain from the sale of a fosport lower capital gains to for ordinary as 1221 :- Whether not it is Connected or business . with the taxed at the the income rate veisus rate (2) (a) Title cash Centain k deferred arrangemen- Rules - include cash or . election Certain plans permitted to deffered arrangements • (2) Treatment of after otax employee cambributions . • (3) Treatment of esop dividend . (4) Treatment of elective plan assels (5) Provide an employee in form of contributions amount to an cash.