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Lesson 5 Discussion Forum

Lesson 5 Discussion Forum

Q Lesson 5 Discussion Forum 6969 unread replies.8787 replies. Why, oh why, would they have done that? In this lesson, we’ve discussed a number of exclusions from income tax that Congress opted to write into the law. In Lesson 2, we discussed a number of concepts that underlie tax law in the United States. Each of you should choose two of the exclusions discussed in Chapter 4 and explain why Congress chose to exclude those from taxation, using the concepts learned in Lesson 2. ________________________________________ Guidelines for Discussion Each student must create one initial post for each of the above questions. Students should create a single initial post for each discussion. So, if a lesson has two (2) discussion questions, students should create two (2) initial posts. Students should respond to all questions asked to the best of their ability. Most questions are pretty straightforward or call for opinions with support, so students should be able to respond to all of the questions. All initial entries should be posted no later than 11:59 p.m. (ET) on Thursday of this week. You must reply to at least two colleagues by no later than 11:59 p.m. (ET) Sunday in a manner that extends the discussion. Discussions are set to post first, so you will need to post your initial reply before you can see the posts of others. Select the Options menu (?), then Show Rubric to see how this assignment will be graded. You may wish to subscribe to this discussion so that you are notified of responses. Your post should show original thought and be substantiated by content from the course readings or an outside source. All sources should be cited properly using APA format, Blue Book (Legal Citing-check chapter 16, or MLA format). A student must be able to substantiate their positions. Citing the Internal Revenue Code, Tax Cases or other authority will give a student a better score. To see the rubric for this discussion, select the Options menu (?) > Show Rubric. Why, oh why, would they have done that? In this lesson, we’ve discussed a number of exclusions from income tax that Congress opted to write into the law. In Lesson 2, we discussed a number of concepts that underlie tax law in the United States. Each of you should choose two of the exclusions discussed in Chapter 4 and explain why Congress chose to exclude those from taxation, using the concepts learned in Lesson 2.

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Before diving into the exclusions, it is important to establish the difference between an income exclusion and a deduction from income. An exclusion is a tax-free inflow to the taxpayer whereas a deduction is a tax-favored outflow from the taxpayer. There are several types of exclusions to income discussed in this week’s lesson. For this discussion, I will elaborate on two specifically: donative items and returns of human capital.