Steps to Completion: Research Tax Topics Step 1: Conduct tax research on various tax topics. See Appendix A. Step 2: Write a report for the boss demonstrating your knowledge of the tax topics. Appendix A: Research List Research the tax treatment for each of the following income items: 1. Rental income 2. Long Term Capital Gains and Losses 3. Annuity income 4. Amounts received from settlement of lawsuits or from court judgments. Specify the different treatment for: (a) compensation for pain and suffering, (b) punitive damage awards, (c) compensation for mental and emotional distress, (d) compensation for lost wages 5. Discharge of Indebtedness Income 6. Scholarships 7. Divorce payments: Alimony vs. Child Support vs. Property Division 8. Prizes winnings, both cash and property (vehicles, vacations, etc.) 9. Gambling winnings 10. Consulting income 11. Non-cash transactions (barter systems) For each item, describe the rules of taxation for each of income topics. Make sure you cover each item thoroughly.
