federal income tax - law school outlines and legal study 联邦所得税法学院和法律研究概述

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1、43FEDERALINCOMETAX–Prof.AscherFall2001TheTaxingFormula:GrossIncome-§61-§62Deductions–abovethelinedeductionsAdjustedGrossIncome-§62-StandardDeductionorItemizedDeduction-PersonalExemptionsTaxableIncome–nettaxbasexTaxRateTaxLiability-Credits+AdditionalTaxesFinalLiabilityI.GROSSINCOMEA.Defi

2、ningGrossIncome§61·61(a)–allincomefromwhateversourcederived.Thereisnospecificdefinitioninthecodeor16thAmdt.·Haig-SimonsDefinitionofIncome–broad,reliedonbyeconomists:personalincome=TP’spersonalexpenditures+(or-)theincrease(ordecrease)intheTP’swealth.Notsuitablefortaxliability,e.g.can’tta

3、xtheincreaseinvalueofahome.B.FormsofGrossIncome--§61(a),1001(a)—(c)·§61GrossIncomeDefined:(1)Compensationforservices;(2)grossincomefrombusiness;(3)propertygains(4)interest;(5)rents;(6)royalties;(7)Dividends;(8)alimony&separatemaintenancepayments;(9)annuities;(10)lifeinsuranceincome;(11)

4、Pensions;(12)Incomefromdischargeofindebtedness;(13)DistributiveshareofpartnershipGI;(14)Incomeinrespectofadecedent;(15)Incomefromaninterestinanestateortrust.·§103Excludedinterestonstate&localbondsfromincome.·Basis–TP’sstakeinproperty.(§1012)·Gain=Amountrealized(AR)–Adjustedbasis(AJ)(§10

5、01(a))2.IncomewithoutReceiptofCash(“in-kind”benefit)Twoissuesonin-kindbenefits:·doesitconstitutegrossincomee.g.ifrelationshipbetweenpartiesismorefamilial,lesslikelytobecompensatory.-themorefamilialtherelationshipthelesslikelythereceiptistobecompensatory.-whateffectdoesinclusionofnoncash

6、receiptshaveontheabilityofTPtopaytaxes?·valuation·Valuationissues–fairmarketvalue.Valueofanon-cashreceipt=pricethatwouldbereachedinatransactionbetweenawillingbuyerandawillingseller.·Subjectivevaluationmightbeappliedto“forcedpurchases”.Basedonthenotionthatin-kindreceiptsdon’tprovidethesa

7、mefreedomofchoiceascash.·TurnerCase–“NamethatSong”contest.Lowervaluationb/c“luxurybeyondhismeans.”Forcedconsumptionofprizewinnings.Courtallowedlowervaluation