· 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 ?