Reference no: EM132713371

Questions -

Q1. Robert was employed during the first six months of the year and earned a $90,000 salary. During the next six months, he collected $7,200 of unemployment compensation, borrowed $6,000 (using his personal residence as collateral), and withdrew $1,000 from his savings account (including $60 interest). When he left his former employer, he withdrew his retirement benefits (a qualified annuity) in a lump sum of $50,000. He made no contributions to the plan. Robert's parents loaned him $10,000 (interest-free) on July 1 of the current year, when the Federal rate was 3%. Robert did not repay the loan during the year and used the money for living expenses. Calculate Robert's adjusted gross income for the year.

Q2. Compare and contrast the constructive receipt doctrine and the assignment of income doctrine. In what situations do these doctrines apply? What tax planning strategies does each doctrine limit?