Write a memo to the me describing the situation

Assignment Help Accounting Basics
Reference no: EM131649946

Assignment - Tax Research

BeBe Hassell is a successful tax attorney in New Orleans, Louisiana. She purchases a vacation home, or "camp" on Lake Pontchartrain, just north of the city, to enjoy on the weekends with her husband, Gabe, and four children. Gabe is a professor of journalism at the University of New Orleans. Because of poor reception, she and Gabe install a tall, 30 foot antenna tower alongside the camp, at a cost of $4,000.00. They notice over a period of five years, that the tower is battered by wind and waves, and tilts more each year and the metal is weakened a bit more each year by the salty brackish water and the salt air. The tower becomes visibly in poor condition.

Almost five years to the day after the tower is installed, there is a near-miss from a hurricane and no great damage is done, except their tower is toppled and ruined. Nearby neighbors with newer towers mostly find that their towers survived the storm, although a couple of the new towers of nearby camps also had their towers destroyed by the storm, which was powerful enough to destroy even new towers if it happened to hit hard at that spot.

Assignment:

For a loss to count as a casualty loss deduction, it must be the result of a sudden, unexpected or unusual event, not a "wearing out" or deteriorating over time. Can BeBe and Gabe take a casualty deduction for this loss? Please do the following:

1. Research this on the internet, using IRS publications, Google or other search engine, and other sources you find on the internet.

2. Write a memo to the me, describing the situation, and also describing the results of your research. Restate the facts, then state what you see as the issue. Then describe the sources that you located that gave you good information on this issue, and describe what each resource said about this situation. If you can, cite the Internal Revenue Code section that discusses casualty losses.

3. Give your conclusion. Is the antenna loss deductible or not, and why or why not?

Reference no: EM131649946

Questions Cloud

Optimize the profitability of the organisation : Understanding of synergies of integrating different key organisational functions give an account of how different functional departments
Describe the growth performance of china and india : In your essay, describe the growth performance of China and India, both in absolute terms and in per-capita terms. Why is TFP hard to measure?
Mbnqa and the deming prize similar : 1. In what ways are the MBNQA and the Deming Prize similar, and in what ways are they different? Please elaborate.
Create a description of the three types of searches : Describe the PPC campaign that you recommend for the case study company. Create a description of the 3 types of searches.
Write a memo to the me describing the situation : Write a memo to the me, describing the situation, and also describing the results of your research.
What is single most important law impacting labor movement : What is the single most important law impacting the labor movement? What is the major penalty an organization suffers for not being accredited?
Find a confidence interval for the given statistic : When restricted to the 239 active traders in the sample, Pew reports that 45% rely on the Internet for investment information.
Define the dynamics of a healthy work environment : Nursing theory defines the profession and guides practice by providing a knowledge base and standards to follow. Nursing theorist observe the needs
Evaluate the ci for the percentage of all american adults : Create a 95% confidence interval for the percentage of all American adults who favor the death penalty.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd