Card Set Information
PJK Tax I
Cesarini v United States
If you find cash, it's included as ordinary income in the year you found it. (piano)
Old Colony Trust v Commissioner
If someone pays your tax due, that pmt should be included in your gross income.
Commissioner v Glenshaw Glass Co.
Punitive damages qualify as income
Dean v Commissioner
House transferred to company owned by Dean due to financial distress. FMV of rent to be included as income.
gift is given out of detached and disinterested generosity due to affection, respect, admiration, charity, or like impulses.
Gifts and inheritances
generally excludable form gross income.
Gifts made by employers to employees
generally includable in gross income. Except for traditional retirement gifts and certain employee awards which can be excluded. De minimis fringes are also excludable.
excludable from gross income
Fringe benefit � no additional cost service
At no addt�l cost to employer
Fringe benefit � qualified employee discount
Services� 20% of orig price; Property� profit margin (sales price � cost)/sales price
Fringe benefit � working condition fringe
Would be deductible by employee if employee paid themselves
Fringe benefit � de minimis
So small, administratively impractible to track (personal use of copier)
Fringe benefit � qualified transportation
Transit pass, token, fare card
Fringe benefit � qualified moving expense reimbursement
Would be deductible b employee if paid themselves
Fringe benefit � qualified retirement planning services
Retirement planning advice offered by employer
Fringe benefit � athletic facilities
On premises athletic facilities
Employer provided meals
Excluded if on the premises and for the convenience of the employer
Employer provided lodging
Excluded if required as a condition of employment, on the premises, for convenience of employer
Gain on sale of principal residence
exlusion up to 250/500k, must live in 2 of last 5 years, allowed once every 2 years
Ownership test - gain on sale of principal residence
Use pro-rata calc if forced to move due to 1. change of employment 2. health reasons 3. unforseen circumstances (see regs)
Non-qualified use on sale of house (post 2008)
total non-qual use/total period of ownership * gain = percentage of gain that is taxable
Income earned abroad
Excludable if bona fide resident for entire taxable year, or present in foreign country for 330 days of the preceeding 12 months. $91,500 max exclusion
Foreign houseing allowance
Excludable if paid by employer, deductible if you pay, only one house (unless dangerous conditions), $27,450 max.
Prizes and awards
generally included as gross income