INCOME TAXATION LECTURE NOTES (2)

 Employer-provided disability benefits are taxable.

 In the case of foreign-earned income, U.S. citizens may avoid double taxation of
income by both the U.S. and the host country by utilizing a foreign tax credit or
by electing the foreign earned income exclusion.

 The maximum discount for services is 20%.

 If the proceeds from the sale of small business stock held more than 6 months
are reinvested in other small business stock within 60 days of the sale, no gain is
recognized.