Office space is often rented without​ carpet, wall​ covering, or window covering.​ Furthermore, many rental agreements specify that these improvements cannot be removed

Explain the meaning of the term wherewithal to pay as it applies to taxation.

The concept of​ wherewithal-to-pay means that a tax should be imposed when the taxpayer can most easily pay. A taxpayer who owns property that has increased in value does not necessarily have the funds needed to pay any tax. Taxing the gain when it is realized often means that the tax becomes due at the same time the taxpayer collects the sales price.

QI:3-6

A landlord who receives prepaid rent is required to report that amount as gross income when the payment is received. Why would Congress choose to do​ this? What problem does this create for the​ taxpayer?

QI:3-7

Office space is often rented without​ carpet, wall​ covering, or window covering.​ Furthermore, many rental agreements specify that these improvements cannot be removed by a tenant if removal causes any damage to the property. What issue does this​ raise?

QI:3-8

Does the fact that an item of income is paid in a form other than cash mean it is​ nontaxable? Explain.

QI:3-9

Explain the significance of Lucas v. Earl and Helvering v.

Horst.