Accounting Questions Week Four

Oct 7th, 2015
Business Finance
Price: $15 USD

Question description

1. The Cohan Case

You might want to look up the Cohan vs. Commissioner case.   Its citation is 2 USTC Par. 489, or alternatively 39 F.2d 540. First of all, one or two of you might see if you can find it. If you can, take a look at the case. This is a VERY important case for tax practitioners, as it explains that in many cases you can still get deductions even if you don't have the receipts to prove it. The Cohan case is very useful and I have used it several times in my tax practice with very good results, to still get my client deductions allowed, even when the client did not have the receipts.

Who was George M. Cohan? You can look him up on the internet. 100 years ago, he was one of the most famous men in America. And what was the case about? What was the issue and how was it resolved?

2. Thinking as a Tax Planner

Your client is offered a job which will last one year (ASSUME HE IS A PROFESSIONAL FOOTBALL PLAYER, AND VERY HIGHLY PAID), and is given two options for getting paid. They can choose to get monthly checks for $325,000 each, or $250,000 per month with the extra $900,000 placed in escrow and paid to the employee, with interest, upon retirement at some future date (more than one year). What are the tax implications of the alternatives? What is your recommendation?

Tutor Answer

(Top Tutor) Dani M
School: University of Maryland

Studypool has helped 1,244,100 students

Review from student
" Outstanding Job!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors