· a. What are the seven major types of fringe benefits covered by Sec. 132?
· b. What tax advantage is offered relative to such benefits?
· c. Are such benefits available to employees only or may the benefits also be offered to spouses, dependents, and retirees?
· d. Is discrimination prohibited relative to Sec. 132 benefits?
· e. What is the tax impact on the employer and employees if an employer’ s plan is discriminatory?
6-1
Why is the distinction between deductions for AGI and deductions from AGI important for individuals?
6-13
Michelle pays a CPA $ 400 for the preparation of her federal income tax return. Michelle’ s only sources of income are her salary from employment and interest and dividends from her investments.
· a. Is this a deductible expense? If so, is it a deduction for or from AGI?
· b. Assume the same facts as in Part a except that in addition to her salary and investment and dividend income, Michelle also owns a small business. Of the $ 400 fee paid to the CPA, $ 250 is for the preparation of her Schedule C( Profit or Loss from Business). How much, if any, of the $ 400 is a deductible expense? Identify it as either for or from AGI.
6-20 Why did Congress enact the wash sale provisions?