4 . Jane purchased an annuity contract that pays her $ 800 per month . The annuity cost her $ 50,000 and it has an expected return of $ 100,000 . How much of each monthly annuity payment is includible in Jane ' s gross income ?
5 . Which of the following is not considered " constructive receipt " of income ?
Mr . W received a check on December 30 , 2009 for services rendered , but was unable to make a deposit until January 3 , 2010 . 6 . Stan and Anne were divorced in January 2009 . The provisions of the divorce decree and Anne ' s obligations follow : ( 1 .) Transfer the title in their resort condo to Stan . At the time of the transfer , the condo had a basis to Anne of $ 75,000 , a fair market value of $ 95,000 ; it was subject to a mortgage of $ 65,000 . ( 2 .) Anne is to make the mortgage payments for 17 years regardless of how long Stan lives . Anne paid $ 8,000 in 2009 . ( 3 .) Anne is to pay Stan $ 1,000 per month , beginning in February , for 10 years or until Stan dies . Of this amount , $ 300 is designated as child support . Anne made five payments of $ 900 each in 2009 ( February-June ). What is the amount of alimony from his settlement that is includible in Stan ' s gross income for 2009 ?
7 . To be deductible for tax purposes , a trade or business expenditure must be :
8 . Mr . Wilson is 66 years old and single . His income for 2009 consisted of the following : Taxable pension $ 10,000 Taxable interest 9,000 Taxable dividends 5,000 Social security payments 5,000 He did not have any adjustments to income . What amount of W ' s social security benefits is taxable ?
9 . Explain the Assignment of Income Doctrine ( AID ) and the " fruitof-the-tree " doctrine .
10 . Explain the Constructive Receipt Doctrine . 11 . Explain the Economic Benefit Doctrine .