TAX 650 Milestone One Gross Income and Capital Gains

TAX 650 Milestone One Gross Income and Capital Gains

Author: Jean Brunner


In this short paper, you will compute the property disposition capital gain and taxation of gross income for the client described in the final project. Based on your computations and relevantsections of the Internal Revenue Code, explain the tax consequences on the possible sale or exchange of the land, including the impact on cash flow and salary or cash distributions.
Specifically,the following critical elementsmust be addressed:A. Calculate the property disposition capital gains and taxation of gross income.B. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, broker’s fees, closingcosts, appraisals, and surveys and the correct schedule form to complete.C. Describe the after tax effects on the client’s cash flow based on the sale of the land. Consider including capital gains tax rules.D. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and the Internal Revenue Code and Treasury regulations. Consider the type of business and the tax effect whether it is salary, dividends,or cash withdrawal.
Guidelines for Submission: Your paper must be submitted as a 2–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and at least three sources cited in APA format.

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.