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Taxation: Court, Series EE, child tax credit, Sec 1231

3- Jaime recently found a "favorable" trial level court opinion directly on point for her tax question. Which trial level court would he prefer to have issued the opinion?

4- Sam saved diligently for his college education by putting part of his pay into U.S. Series EE saving bonds. Sam purchased the bonds for $6,500, and this year he redeemed the bonds for $7,200. He has no other income this year. What amount must Sam include in his gross income?

5- Rhianna and Jay are married filing jointly in 2009. They have six children for whom they may claim the child tax credit. Their AGI was $123,440. What amount of child tax credit may they claim on their 2009 tax return?

6- Jim was in an auto accident this year. Jim paid $2,450 to repair his car after the accident, and his insurance only reimbursed him $400. Jim bought his car several years ago for $15,000. What casualty loss deduction from this accident can Jim combine with his other casualty losses in computing his itemized deductions?

7- Winchester LLC sold the following business assets during the current year: (1) automobile, $30,000 cost basis, $12,000 depreciation, proceeds $20,000; (2) machinery, $25,000 cost basis, $20,000 depreciation, proceeds $10,000; (3) furniture, $15,000 cost basis, $10,000 depreciation, proceeds $4,000; (4) computer equipment, $25,000 cost basis, $6,000 depreciation, proceeds $10,000; (5) Winchester had unrecaptured Section 1231 losses of $3,000 in the prior 5 years. What is the amount and character of Winchester's gains and losses before the 1231 netting process?

8- Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. What is the maximum depreciation expense?

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3- Jaime recently found a "favorable" trial level court opinion directly on point for her tax question. Which trial level court would he prefer to have issued the opinion?

The highest trial level court opinion is the US Tax Court, and only decisions by the US Supreme Court are binding authority over the IRS. Therefore, the best opinion as a defense would be a favorable Tax Court decision.

http://wiki.answers.com/Q/What_are_the_trial_courts_for_the_federal_court_system

4- Sam saved diligently for his college education by putting part of his pay into U.S. Series EE saving bonds. Sam purchased the bonds for $6,500, and this year he redeemed the bonds for $7,200. He has no other income this year. What amount must Sam include in his gross income?

Both Series E and Series EE bonds can be used for education which will allow the interest to be exempt from federal income tax, provided certain requirements are met. The interest is already exempt from state and local taxes.

The requirements are:
The bond must be issued in the name of one or both parents (not the child's name), and the owner of the bond must be at least 24 years old
The bond proceeds must be used to pay qualified higher education expenses (generally tuition and fees, not room and board)
The bond must be redeemed (cashed in) by the owner in the year it's used to pay the ...

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