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COMPENSATION ARRANGEMENTS (GRADED)
Consider the issue of compensation from the viewpoint of a business and the viewpoint of the individual. What are the risks and rewards to each of treating a worker as an independent contractor or an employee?
PASSIVE ACTIVITIES (GRADED)
Income and deductions derived from investments, business ventures, rental property, and so forth are of a unique character. With this concept in mind, briefly describe the concept of passive activities and the corresponding tax consequences of investments in such activities. What are the political underpinnings of the current tax treatment?