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100% Multiple Choice Exam

I have some good outlines, the 500 page Chirelstein treatise, and the E&E

I haven't cracked any of the above yet though. And I went to class about 2-3 times, but just facebooked etc the entire time. I have done my own taxes and fairly competent in personal finance, so familiar with the terminology at least.

Am I fucked? Suggestions? Last class of law school. Shooting for a B+, content with a B

Just wing out. Throw out the word "basis" randomly.

star fox wrote:Just wing out. Throw out the word "basis" randomly.

The "basis" tip will be helpful. I would also memorize this:
Issue: Is this business expense deductible.
Rule: IRS Code 162 provides that business expenses are deductible if they are ordinary and necessary.
Analysis: Busiesses incur expenses, therefore most expenses incurred by a business are considered ordinary. A business would not incur an expense if it was not necessary.
Conclusion: Therefore, a tax court would not likely second guess the business and hold the expenses are necessary and ordinary and therefore deductible.

kellyfrost wrote:

star fox wrote:Just wing out. Throw out the word "basis" randomly.

The "basis" tip will be helpful. I would also memorize this:
Issue: Is this business expense deductible.
Rule: IRS Code 162 provides that business expenses are deductible if they are ordinary and necessary.
Analysis: Busiesses incur expenses, therefore most expenses incurred by a business are considered ordinary. A business would not incur an expense if it was not necessary.
Conclusion: Therefore, a tax court would not likely second guess the business and hold the expenses are necessary and ordinary and therefore deductible.

Thanks guys, both tips actually seem great

However, I should have mentioned my exam is 100% multiple choice. How does that factor into the calculus?

the E&E is great. The Chirelstein treatise is long and pointless.

search "outline dump" someone put up a GREAT fed inc tax outline recently.

dabigchina wrote:the E&E is great. The Chirelstein treatise is long and pointless.

This. Sadly my prof went in much more in-depth, so I had to actually look through tax provision examples on stupid issues like worthless securities, etc. Make sure you understand non-recognition rules and when they apply. I would just work through problems at least once if you're tight on time. Main idea of tax: statutory construction is to maximize tax collection, which means all income is taxable (including illegal income) unless otherwise indicated, nothing is deductible unless explicitly authorized, and the criteria set forth by the deduction will be strictly adhered to.

I would not just throw in basis randomly. You have to actually know the idea of basis and how to calculate/how it changes it in certain transactions.

Understand when it is a capital loss/gain and when is it treated as ordinary income. Differences between personal expenses and business expenses, and the situations where it is grey. But really it all goes back to, don't deduct unless the code explicitly provides for it, and you have to follow requirements to a T.

Good luck.

thanks guys