Revenue rulings and revenue procedures are examples of primary tax authorities.

David and Pippa contributed to the support of their three children, Lisa, Tanya, and Hannah, and Pippa’s divorced mother, Ellen. For the current year:(1) Lisa is 28 years old. She is a salesclerk who earned $50,000. (2) Tanya is 23 years old. She is a full-time graduate student in accounting at Lamar University. She earned $40,000 working for a local CPA firm. (3) Hannah is 20 years old. She is an artist and earned nothing during the year, but is still aspiring to sell her first piece. During the year, she adopted a puppy, Bengie. David and Pippa pay for all vet bills and dog food. (4) Ellen received $1,550 of gross income.  All are U.S. citizens and are over half supported by David and Pippa.How many dependents do David and Pippa have under the qualifying child and qualifying relative rules?

Barney and Betty got divorced in 2022. In the divorce decree, Betty agreed to pay Barney $24,000 per year for five years (or until Barney’s death or remarriage) and $10,000 per year until their daughter, Pebbles, turns 19 years old. What amount (if any) is included in Barney’s gross income in 2024?

When employees contribute to a traditional 401(k) plan, they _________ allowed to deduct the contributions and they _________ taxed on distributions from the plan.Fill in the blanks.

Brian was recently awarded 1,000 restricted stock units (RSUs) by his employer, Dependence Corporation, when the share price was $10 per share. The RSUs vested three years later when the market price was $16. Brian held the shares for a little more than a year and sold them when the market price was $17.What is the amount of Brian’s income or loss on vesting date?

In 2024, Cory sold his qualified small business stock for $90,000 after holding it for 10 years. His basis in the stock is $40,000. Applying the rules as if the stock were acquired in 2012 and assuming his marginal tax rate is 32 percent, how much tax will he owe on the sale?

Linda is a qualifying widow in 2024. In 2024, she reports $60,000 of taxable income (all ordinary). What is her gross tax liability using the tax rate schedules?

If April 15th falls on a Saturday, the due date for U.S. Federal individual tax returns will be on Monday, April 17th (assuming it is not a holiday).

A below-market loan (e.g. from an employer to an employee) is a common example of a transaction that could generate taxable imputed income.

If a student answers a question confidently in class, and you think, “They must be really smart,” rather than “They must have studied!” you are making a ______ attribution.