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chose 2 of the 3 questions minimum at least of a page

Question ONE

The goal of the Internal Revenue Code is to impose higher taxes on those earning higher incomes. In the application of income Deductions and the imposition of taxes on Capital Gains, give major examples of how those taxpayers with higher income pay greater taxes than those of lower income. You may also include examples of how the goal does not work.

Question TWO

The sale of property may result in 1. significant taxation at ordinary income tax rates, or 2. taxation at a lesser capital gain tax rate or, 3. a deferral of tax or 4. no tax at all. Give examples of each of these four circumstances.

Question THREE

You have a high income client who is a surgeon and is also a sculptor. She has major income from surgery but some revenue from the sale of sculptures; but her sculpture revenue is less than her sculpture expenses. How will you treat her sculpture revenue end expenses when preparing her tax return?

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