A brief of taxation case Essay Example | Topics and Well Written Essays - 500 words

A brief of taxation case - Essay ExampleIn 1938, the billet was sold a remuneration gross revenue of $2,500.00 (after deducting $500.00 sales expenses).The petitioner reported 50% of the net sales value ($1250.00) as taxable income (Bittker 277).Analysis According to the petitioner, the property she had inherited was in the form of equity which according to the tax laws was zero tax based. The amount collected from the sales should have been treated as her net gain from the sales of equity (Yin 208). The IRS commissioner to the contrary argued that the petitioner had inherited land and building and not equity. He cited that before the selling, the petitioner was allowed depreciation deductions of $25,000 in excess on the premises. Likewise, the commissioner pointed disclose that the petitioner received money equivalent to the net sales on top of the debt amount transferred to the buyer of the property (Yin 214).First, the court addressed the meaning of the boy property and whethe r it was a synonym of Equity. The court agreed with the IRS commissioner in addressing how to treat inherited property. In the ruling the court agreed that in that respect was no evidence whatsoever to conclude that both words meant the same thing. Secondly, court said that by replacing the word property with equity down the stairs the tax law would attract negative complications in the future cases. The major problem would have occurred while determining the value of depreciation to be subjected on a property. Subsequently, the action would undermine some of administrative rules in existence (Yin 250).The court secondly determined that the value the petitioner realized from selling the property should be subject to the conclusion made under the first issue. The court maintained that there must exist actual money receipt or receipt of any other property on a transaction for it to be subjected to a taxable gain. Finally, the court ruled