Tax Research: Ed and Whitney case

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Table of Contents

Introduction
Issues
Discussion
Conclusion
References

Introduction

Both Whitney and Ed-North are fervent as regards amassing antiques. Habitually, they perform several tasks encompassing: gracing with their presence at garage sales; and walking around marketplaces with the endeavor of buying commodities. To procure an old writing desk that was deemed to be in poor condition, they opted to fritter $600 in 2010. To that effect, they took the writing desk to the garage for it to be refurbished. In that process, a document that was regarded as being old was discovered by Whitney. This document was found jammed in the dark recess of the desk.

Astonishingly, the old document that was hit upon by Whitney was a Declaration-of-Independence old copy and this made her very thrilled as the discovered document was deemed to be a chronological fortune. Ed-North and Whitney went to the Dutch auction house, known as Sotheby to be appraised for hitting upon that document. Sotheby corroborated the document and as of December 2011, $1,350,000 was its value of the appraisal. In April 2012, after corroboration by Sotheby, its value of appraisal net of other expenses was $1,650,000. Ultimately, Whitney and Ed-North took their cash in May 2012 (Pope, Anderson, & Kramer, 2011). I have been called by my supervisor to come up with a tax report on how Whitney and Ed-North ought to treat their discovered document for levy purposes (CCH, 2013).

Issues

The taxability of the elemental document that was discovered by use of CCH remedies will be dependent on manifold concerns, encompassing: whether there is a taxable income that is associated with this document and if there is, what is the taxable-income amount; and whether there is a character that is associated with a particular income. Ideally, CCH is regarded as the foremost levy provider that is capable of delivering customized remedies, such as the Declaration-of-Independent document (CCH, 2013).

Discussion

Sotheby critiqued the document that was hit upon by Ed-North and Whitney, to minimize the high-priced risks that are in correlation with circuitous tax remedies which are proffered by the CCH (CCH, 2013). There is a taxable income that is associated with this document. The tax research memo greatly employed the CCH tax remedies as they guaranteed that the levy methodologies will fulfill the complicated rules of the current tax (CCH, 2013). The document that was hit-upon by Whitney and Ed-North is a salvaged good. If we happen to hit upon a tossed away or discarded property, which is deemed to be invaluable, precisely, we have spent nothing at all in acquiring it; we ought to encompass its value in our taxable income as this is permitted by the federal law of the U.S.

Conclusion

It is elemental that we utilize CCH tools while levying our antiques. This is given the notion that they offer unswerving and wide-ranging tax remedies. Ed-North and Whitney hit upon an elemental document that is regarded as a salvaged good and thus, they ought to treat it vigilantly for levy purposes. American individuals regard the discovered document as an invaluable item. As regards the Ed and Whitney case, numerous taxable events are in existence and an individual’s income can be represented by these events. It is of necessity to keep our items and assess them critically.

References

CCH. (2013). Corporate Accounting Software. Web.

Pope, T., Anderson, K., & Kramer, J. (2011). Prentice Hall’s Federal Taxation 2012 Individuals (25th ed.). Englewood Cliffs, NJ: Prentice-Hall.

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Tax Research: Ed and Whitney case

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