Why must taxpayer have a fmv basis in the item

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Question - Taxpayer received a tax-free benefit, perhaps a gift from a company that wanted to increase its business. Why must taxpayer have a fmv basis in the item?

If taxpayer receives a benefit but has no choice regarding its consumption - the manager of a lighthouse must live with his family in the lighthouse - should taxpayer be taxed on the value of the benefit? Why or why not?

Taxpayer owned some commercial property. Taxpayer recorded the property on its corporate books at a certain value. Over the course of several years, the value of the property fluctuated up and down. Taxpayer did not pay income tax on the increase in the property's value. Why should taxpayer not be permitted to deduct decreases in the property's value?

Reference no: EM133065631

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