Individual Research Paper

Individual Research Paper Product: Research Paper Writing Subject Area: Accounting Education Level: Bachelors Page Length: 2 Pages Formatting: APA English: US Deadline: Aug 4 2014 1:49PM EST Details: Write a tax memorandum that clearly that summarizes the key facts, tax issue(s), the relevant tax laws or regulations, and a conclusion. Briefly discuss how the tax laws or regulations apply to the facts. (e.g., Internal Revenue Code, Regulations and tax court cases) Each student must prepare and submit his/her typed memorandum. Formatting: single space, Times New Roman font, 12 font size 1 to 2 pages. The assignment will not be accepted after the due date. THE INDIVIDUAL RESEARCH QUESTION IS Research Problem Kim Barnes worked in Paris, France from December 1, 2012 to January 31, 2013 and earned a total of $20,000. Because it was her first time away from her friends and family, she felt homesick and decided to return home February 1, 2013. Two months later, Kim received another offer to work in London, England. She decided to accept the job offer. She arrived in London on April 1, 2013. The job began on April 2, 2013 and ended on March 31, 2014. After the job ended, she took one to travel around Europe. She returned home on May 1, 2014. She earned $90,000 in 2013 and $30,000 in 2014. Kim is seeking your guidance to determine the following: (1) whether she qualifies for the foreign earned income exclusion for 2012, 2013, and 2014. (2) If so, she would like to know her exclusion amount for each year that she qualifies. Write a one-page tax letter addressing her questions. Provide a clear explanation of the applicable tax law and apply it to her situation. Also provide a brief conclusion. ALSO I WILL PROVIDE WITH ONE SAMPLE HOW IT SHOULD LOOK LIKE, PLEASE MAKE SURE IT LOOKS LIKE THIS Ms. Annie Byrd HH Partnership 22 West 2nd Street Los Angeles, CA 90032 Dear Annie: You have asked our advice regarding the effect of 2014 operating results and distributions from the HH Partnership on your personal 2014 tax situation. Facts: The partnership reported no income or loss for the year. You received a distribution in December of $120,000 cash, and inventory which had a basis of $50,000 to the partnership and a fair market value of $60,000. Your basis in the partnership interest on January 1, 2014, was $160,000. Issues to be addressed*: a. Does the partnership recognize gain or loss in 2014? b. How much gain or loss must you report for the current year? c. What is your basis in the inventory received from the partnership? d. What is your basis in your partnership interest at the end of the year? Conclusion and analysis: The partnership will recognize no gain or loss on either the cash or inventory distribution. You will recognize no gain or loss on the cash distribution. This distribution did not exceed your $160,000 basis in your partnership interest, so there is no taxable gain. Your basis in the inventory you received is $40,000. The basis in inventory distributed from a partnership is the lesser of the partnership's basis in the property before the distribution ($50,000) or your basis in the partnership interest after considering the cash distributions ($40,000). Your basis in the partnership interest is $0 at the end of the year. The cash distributions reduced your basis to $40,000 ($160,000 – $120,000). The inventory takes a substituted basis of $40,000 and reduces your basis to $0. Because your basis in the inventory is $10,000 less than the partnership's basis, the partnership may wish to elect, under § 754, to increase the basis of its remaining assets by $10,000. If you have any questions, please do not hesitate to call us. Sincerely, John Collins