Reference no: EM131266474
Which of the following statements are true?
1. Tax evasion is a legal way to minimize your taxes.
2. A partnership is not a separate taxable entity.
3. Income received by a taxpayer's agent is taxable to the taxpayer.
4. A tax that is imposed on the right to pass property at death is classified as an estate tax.
5. The state of Alaska has a sales tax.
2. Which of the following statements are false?
1. In December 2014, Sally collected the December 2014 and January 2015 rent from a tenant. Sally is a cash basis taxpayer. The amount collected in December 2014 for the 2015 rent should be included in her 2015 gross income.
2. Temporary Regulations are only published in the Internal Revenue Bulletin.
3. On transfers by death, the Federal government relies on an estate tax, while states impose an estate tax, an inheritance tax, both taxes, or neither tax.
4. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no such taxes.
5. On December 1, 2015, Marshall, an accrual basis taxpayer, collects $12,000 rent for December 2015 and $12,000 for January 2016. Marshall must include the $24,000 in 2015 gross income.
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