Saturday, 6/09/2012 1:15 – 4:30 p.m.12 questions must be answered in word format Document Preview: Individual Income TaxationTXX 5761 SPRING 2012 Final Exam: Saturday, 6/09/2012 1:15 – 4:30 p.m. The...

Individual Income Taxation TXX 5761 SPRING 2012 Final Exam: Saturday, 6/09/2012 1:15 – 4:30 p.m. The following areas will be important for you to study thoroughly to prepare for the Final Examination. The questions on the exam will draw from these areas although not ALL of the material will, necessarily, be tested on the exam. The Final Exam will consist of 12 Problems similar to those covered throughout the term in class and your class assignments. The Exam will be administered as a timed assignment on Blackboard – i.e. the identical format as we used in the Mid-Term. Students will download the Exam, prepare their answers in Word format and upload to Blackboard no later than 4:30 pm. Each of the Exam Problems will be worth 15 points. To earn maximum credit your answers will: (1) identify/explain the tax issue(s) raised by the question (maximum 7.5 points) and (2) apply the tax law(s) to resolve the question (maximum 7.5 points). As on the Midterm, most questions will have 2 subparts ((a) and (b) in which case the points will be evenly divided. Chapter 16 General Scheme of Taxation of Capital gains and losses Definition of Capital Asset Sale or exchange requirement for capital gain (loss) treatment Options Patents Franchises, Trademarks, Trade-names Lease Cancellation Payments Holding Period Rules Treatment of Capital Gains (Losses) of non-corporate taxpayers Netting process Qualified Dividend Income Tax on Net Capital Gain Treatment of Capital Losses Reporting Treatment of Capital Gains (losses) of Corporate Taxpayers Chapter 5 Gifts and Inheritances Life Insurance Transfer for Value rule Acceleration Compensation for injury and sickness What may be excluded from income Employer sponsored health insurance What may be excluded from income Employer’s after tax cost to provide Foreign earned Income Exclusion Calculate exclusion State and Local Bonds Federal tax treatment After tax rate of return Tax Benefit Rule Income from...