ACC204Unit3Chapter 5 Discussion

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Eastern Gateway Community College **We aren't endorsed by this school
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TAX ACC204
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Management
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Nov 12, 2023
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Chapter 5 Discussion Chapter 5 Discussion The goal of this course discussion is to apply what you have learned after reading chapter material and reviewing PowerPoint presentations. Keep in mind that this discussion question will help prepare you for homework and future assessments, so it is important that you understand the information and actively participate in discussions. To supplement your learning and enhance your understanding, you may also have to conduct research outside of course provided material. Discussion Question Requirements: 1. Pick 1 of the following questions and in a minimum of two paragraphs, answer the question no later than Wednesday by 11:59 p.m. 2. Find 2 peers that answered the opposite question and review. Then, in no less than 1 paragraph, comment with supplemental information and/or why you found it helpful, informative, etc. You must present new ideas and/or thoughts, merely stating that you agree/disagree, or the peer did a good job is not enough to earn full points. 3. Please note, a paragraph is considered a minimum of 4-6 complete sentences. 4. Students will not be able to see peers' postings before posting their initial post. Once you make your initial post, you are not permitted to edit it more than 10%. If it is discovered that you have done so, you will receive zero points. 5. Cite all sources - you must provide the exact link to the reference. Please keep in mind that citing sources does not mean you can directly copy and paste information from the source and use it as your own. You also cannot only change a few words from a source; all work must be in your own words. If copying/pasting is found or the submission is not in your own words, you will receive a zero - no exceptions. This also includes replying to peers' postings. Please see EGCC's college catalog for information about academic dishonesty. Please answer one of the following questions: Larry Bounds has won the Gold Bat Award for hitting the longest home run-in Major-League Baseball this year. The bat is worth almost $35,000. Under what conditions can Larry exclude the award from his gross income? Explain. Describe the kinds of insurance premiums an employer can pay on behalf of an employee without triggering includible compensation to the employee. Explain. Only qualifying plans that reimburse medical expenditures for the employee, spouse, and dependents are exempt from paying health insurance premiums. Unless the business is a small employer who elects to make all of its full-time employees eligible for plans sold through an exchange, the cost of medical coverage paid by an employer and offered through a health insurance exchange is not an exempt benefit. The
exclusion for life insurance premiums is only applicable to qualifying group term policies with a face value of $50,000 or less. Some other nontaxable benefits include: Company provided cell phone De minimis benefits (small perks like free coffee) On-premises athletic facilities Qualified Employee Discounts Qualified transportation benefits (excluded up to $270 per month of employer- provided parking or $270 per month for combination of transit pass and/or carpool vehicle use) Educational Assistance (The amount is nontaxable up to $5,250) Meals and Lodging Reference: Ayers, B., Barrick, J., Lewis, T., Robinson, J., Weaver, C., & Worsham, R. (2021). Chapter 5: Gross Income and Exclusions. In B. Spilker (Ed.), McGraw Hill's Taxation of Individuals and Business Entities (13th ed., pp. 179-180). McGraw-Hill Education. Discussion Responses: Hi Andrea. I agree that it would be difficult for Larry's Gold Bat Award to be deemed as nontaxable. Because the award was performance-based, it does not look like the award would be deemed nontaxable unless he met any of the following conditions that you listed above. Personally, if I think if Larry really needed to push a dedication for the $35,000, I would recommend him to donate it to a charity dear to his heart. Thanks. I learned a lot from your post. Hi Brittany, I agree that for the 35,000 dollars to be nontaxable, Larry has to qualify for one of the events that you listed in your discussion response. Based on the discussion prompt, we already know that Larry would not qualify for the "years of service" deductions because his award was performance-based. Although I agree that Larry's boss could gift him the money. This method would be great for Larry, but not for his boss as he would need to pay a gift tax because the amount is over 15,000. I would not do it if I were Larry's boss.
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