The recommended implementation approach is to utilize the case study during class in a progressive format allowing time for students to evaluate the information provided in the case study and then request additional information that would be necessary to prepare an accurate individual income tax return.
Appendix A provides additional case study documentation that instructors provide to students. Supplemental Information for Year 1 is necessary for Case Requirements 2–4, and Supplemental Information for Year 2 is necessary for Case Requirement 5.
In reviewing the list of items provided by Sam, students should identify that Sam will be allowed a deduction for the business use of the vehicle although the specific expenses to be deducted will depend on whether Sam chooses to use the standard mileage rate method or the actual expenses method. If he chooses to use the standard mileage rate, he will deduct the appropriate amount for the tax...
