Basic Federal Income Taxation: Taxable Income and Tax Computation: Claim of Right Mitigation Doctrine

This lesson is best used after studying Federal Income Taxation: Taxable Income and Tax Computation, in class. The lesson includes problem sets to work through, allowing you to apply the Code and Regs. to a variety of situations involving the claim of right mitigation doctrine under section 1341.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Describe accurately the function of I.R.C. § 1341, including its relationship to the claim of right doctrine and to statutory deductions, such as I.R.C. § 162.
2. Identify the eligibility requirements to obtain the benefit of I.R.C. § 1341 and explain the situations in which that benefit will not be available.
3. Apply the computational rules of I.R.C. § 1341 to a repayment of income previously included under an unrestricted right.