Posted by **will smithe** on Thursday, June 9, 2011 at 1:34am.

bruce wilson won 2 million in the state lottery. the lottery pays out the prize money in 20 annual installments of 100,000 each. After receiving three 100,000 installments, bruce sold the remaining 1.7 million of payments for 1 million. He wants to report the 1 million as long-term capital gain on his tax return, and pay tax at the 15 percent long term capital gains tax rate rather than at his 35 percent marginal tax rae for ordinary income. Bruce requests you to research the law regarding the tax treatment of the 1 million and advise him on whether the payment qualifies for the 15 percent tax rate or would be taxed as ordinary income at his 35 percent marginal tax rate.

- tax accounting -
**SraJMcGin**, Thursday, June 9, 2011 at 10:42am
You might try some of the following sites on tax accounting tutorials:

http://search.yahoo.com/search?fr=mcafee&p=tax+accounting+tutorial

Sra

- tax accounting -
**ahmed **, Wednesday, September 4, 2013 at 12:39am
Congress recently enacted an non refundable credit based on the cost of the qualifying alcohol and drug abuse counseling programs provided by and corporate employer to its employees . The credit is limited to 50 % of the total cost of the program .if a corporation elects the credit, none of the program costs are allowed as a deduction. Any credit in excess of current year tax may not be carried back to forward to another year.

A. TMM Corporation spent $ 80,000 for a qualifying counseling program this year .if TMM has $ 500,000 taxable income before considering this expense .should it elect the credit or deduct the program's cost as an ordinary business expense?

B. Would your answer change if TMM had only $ 70,000 taxable income before consideration of the expense?

## Answer This Question

## Related Questions

- Finance - Sarah just won a $3,000,000.00 lottery. According to the lottery they ...
- math - Suppose a state lottery prize of $2 million is to be paid in 20 payments ...
- Statisics - The state lottery claims that its grand prize is $1 million. The ...
- Statisics - The state lottery claims that its grand prize is $1 million. The ...
- Statistics - The state lottery claims that its grand prize is $1 million. The ...
- math! - Imagine that you are doing research for a term paper in your English ...
- mathematics - the theoretical probability of winning the lottery is 1/1,000,000,...
- Math - HELP A Certain state's lottery LOTTO, is set up so that each player pays...
- math - Consider a state lottery that has a weekly television show. On this show...
- math - consider a state lottery that has a weekly television show. on this show...

More Related Questions