Pick a tax topic topic of emerging interest and write an essay in the form of a client letter of at least 500 words; provide at least 3 references. Internet research is expected. Assume the reader has no background information, so you must explain the topic for the uninformed.
Scoring will be based on writing and persuasion (50%) and content and accuracy (50%).
You may choose one of these or find a topic of your own.
The residential 30% solar credit is scheduled to expire after 2019, with reduced credits through 2021. If it expires, is this good policy?
U. S. Supreme Court partially repeals Defense of Marriage Act making it possible for same-sex married couples to file jointly.
Power purchase agreements; do the tax benefits pass through to the user in the form of reduced purchase costs?
What is the “jock tax?” Do California sports franchises really need to pay athletes more than they would earn in a state with no income tax?
Benefits and detriments of the federal estate and gift taxes. Are they good policy? Explain.
Under the Tax Cuts and Jobs Act, U.S. corporations will pay income tax at 21%. Is this good policy?
What should a planner know about the Qualified Business Income Deduction?
Are rentals included in Qualified Business Income Deduction?
How much is a reasonable salary for a regular corporation shareholder? Make assumptions as to profits and qualifications for the employee shareholder. Explain.
What employee benefits are available for regular corporation employee/shareholders? Explain why these are beneficial.
Is an employee cafeteria with free (or below market) meals good company policy (i.e., does it improve employee productivity or morale)? Address the tax treatment. Can it be discriminatory?
Many fringe benefits and retirement plans are subject to anti-discrimination rules (i.e., they cannot discriminate in favor of officers, owners, and/or highly compensated individuals). Explain.
A number of recent court cases, including Slaughter, TC Memo 2019-65, have dealt with refinements to the definition of self-employment income. Discuss.
Spouses who file a joint return may be entitled to innocent spouse relief in certain cases. A recent case, Briley, TC Memo 2019-55 is a recent example. Discuss innocent spouse relief.