dependent includes any person who qualifies as a dependency exemption, or would otherwise qualify as a dependency exemption except that the gross income and joint return tests are not met. Name two standard devices by which fiduciaries may legally shift tax liability to beneficiaries. The term passive losses was not even on the CPA exam. It was vital to divide Service priorities and Exam priorities into two exclusive modules or networks. One of four stated projects was to enhance Peoria 047’s ability to distinguish legitimate investment partnerships from tax shelters whose entire purpose was to avoid taxes. The key was identifying passive vs. active losses. The actual project was to create both a case and a control structure for the automation of crucial Examination functions at the Peoria Center. The goal was to have automation in place by the time Revenue Rulings against certain passive-loss provisions were codified in next year’s tax law. The older lady’s rouge very red and a paperback with a bookmark’s tongue unopened in her lap; the veinous and piebald claw. Sylvanshine’s seat number was right there stamped onto the brushed steel of the armrest, next to the claw. Its nails were deeply, perfectly red. The smell of his mother’s polish remover, of her makeup compact, the way wisps of her hair escaped the bun and curled down the back of her neck in the steam of the kitchen when he and O’Dowd had returned from the Satterthwaites’ backyard with hammered thumbs and sap in their lashes. Wisps and flashes of uncolored cloud flashed past the window. Above and below were a different story, but there was always something disappointing about clouds when you were inside them; they ceased to be clouds at all. It just got really foggy. Yaw was way in a mirror, it occurred for no reason. Sylvanshine then spent some time trying to feel the fact that his personal body was traveling at the same speed as the craft he was inside. On a large jet it felt like merely sitting in a loud narrow room; here at least the changes in the seat’s and belt’s pressures against him allowed him to be aware of movement, and there seemed to be some security in the physical candor of this, which partly offset the fragility and spatter-potential of the sound of the propellers, which Sylvanshine tried to think of what the props sounded like but could not except as a gnawingly hypnotic rotary hum so total that it might have been silence itself. A lobotomy involved some kind of rod or probe inserted through the eyesocket, the term was always ‘frontal’ lobotomy; but was there any other kind? Knowing that internal stress could cause failure on the exam merely set up internal stress about the prospect of internal stress. There must be some other way to deal with the knowledge of the disastrous consequences fear and stress could bring about. Some answer or trick of the wilclass="underline" the ability not to think about it. What if everyone knew this trick but Claude Sylvanshine? He tended to conceptualize some ultimate, platonic-level Terror as a bird of prey in whose mere aloft shadow the prey was stricken and paralyzed, trembling as the shadow enlarged and became inevitability. He frequently had this feeling: What if there was something essentially wrong with Claude Sylvanshine that wasn’t wrong with other people? What if he was simply ill-suited, the way some people are born without limbs or certain organs? The neurology of failure. What if he was simply born and destined to live in the shadow of Total Fear and Despair, and all his so-called activities were pathetic attempts to distract him from the inevitable? Discuss important differences between reserve accounting and charge-off accounting in the tax treatment of bad debts. Surely fear is a type of stress. Tedium is like stress but its own Category of Woe. Sylvanshine’s father, whenever something professionally bad happened — which was a lot — had a habit of saying ‘Woe to Sylvanshine.’ There is an anti-stress technique called Thought Stopping. The excess present value index is the ratio of the present value of future cash inflows to the initial investment. Segment, significant segment, combined segment revenue, absolute combined segment revenue, operating profit. Material price variance. Direct material price variance. He thought of the removable grate over the air duct above his and Ray Harris’s desk in the Rome REC and the sound of the grate being removed and then jammed back into place and driven home with the heel of Harris’s hand, and then recoiled from the thought in a way that made it feel as if the craft were accelerating. The interstate highway below disappeared and then sometimes reappeared at a spot Sylvanshine had to squash his cheek right up against the plastic inner window to see, then as the rain recommenced and he could tell they were beginning descent it reappeared in the window’s center, light traffic crawling with a futile pointless pathos you could never sense on the ground. What if it felt as slow to actually drive as it looked from this perspective? It would be like trying to run under water. The whole ball game was perspective, filtering, the choice of perception’s objects. Sylvanshine tried to envision the small plane as seen from the ground, a cruciform shape against the old-bathwater color of the cloud cover, its lights blinking complexly in the rain. He imagined rain on his face. It was light, a West Virginia rain; he hadn’t heard one unit of thunder. Sylvanshine had once been on a first date with a Xerox rep who had complex and slightly repulsive patterns of callus on her fingers from playing the banjo semi-professionally as her off-time passion; and he remembered, as the overhead bell again rang and the sign lit, the no-cigarette glyph legally redundant, the pads’ calluses deep yellow in the low dinnerlight as he’d spoken to the musician about forensic accounting’s intricacies and the hivelike organization of the Northeast REC, which was only one small part of the Service, and the Service’s history and little-understood ideals and sense of mission and the old joke (to him) about how Service employees in social situations would go to such absurd lengths to avoid telling people that they worked for the IRS because it often cast such a social pall because of popular perceptions of the Service and its employees, all the while watching the calluses as the woman worked her knife and fork, and that he’d been so nervous and tense that he’d yammered on and on about himself and never asked her sufficiently about herself, her history with the banjo and what it meant to her, which was why she hadn’t liked him enough and they hadn’t connected. He’d never given the woman with the banjo a chance, he saw now. That what appears to be egoism so often isn’t. In some ways, Sylvanshine was a whole different person now in Systems. Their descent was mainly a heightening of the specificity of what lay below — fields revealed as plowed and perpendicularly furrowed and silos as adjoined by canted chutes and belts and an industrial park as individual buildings with reflective windows and complicated clumps of cars in the parking lots. Each car not only parked by a different human individual but conceived, designed, assembled from parts each one of which was designed and made, transported, sold, financed, purchased, and insured by human individuals, each with life stories and self-concepts that all fit together into a larger pattern of facts. Reynolds’s dictum was that reality was a fact-pattern the bulk of which was entropic and random. The trick was homing in on which facts were important — Reynolds was a rifle to Sylvanshine’s shotgun. The feeling of a slight trickle of blood from his right nostril was a hallucination and to be ignored absolutely; the feeling simply did not exist. Sinus trouble ran in Sylvanshine’s family in the worst way. Aurelius of ancient Rome. First principles. Exemptions vs. deductions, for AGI vs. from AGI. A loss sustained from a nonbusiness bad debt is always classified as a short-term capital loss and may therefore be deducted on Schedule D as per the following IRC §: One building’s roof had what was either a marked helipad or a complicated visual signal to the planes descending overhead, and the pitch of the propellers’ doubled hum was different and his right sinus was even now ballooning redly in his skull and they really were descending, the term was controlled descent, the interstate now rococo with exits and half-cloverleafs and the traffic denser and with something insistent about it, and the claw rose from the steel armrest as there appeared a body of water below, a lake or delta, and Sylvanshine felt one of his feet was asleep as he tried to recall the peculiar crossed-arm configuration with which the figures on the card held their seat cushions to their chests in the unlikely event of a water landing, and now they did really and truly yaw and their speed became more evident in the rate of passage of things below in what had to be an older district of Peoria qua human city, close-packed blocks of sooty brick and angled roofs and a television antenna with a flag attached, and a flash of a bourbon-colored river that was not the previous body of water but might have been connected to it, nothing like the stately and befrothed stretch of Potomac that obtruded through Systems’ windows on Antietam’s hallowed site, noting that the stewardess in her fold-down seat had her head down and arms about her own legs where at year’s end the aggregate fair value of Brown’s salable securities exceeds the aggregate carrying amount at the beginning of the year as out of nowhere appeared an expanse of pale cement rising to meet them with no warning bell or announcement and his soda can wedged in the seat pocket as the gray death’s-head beside whipped right and left and the propellers’ shimmering sound shifted either pitch or timbre, and the older lady stiffening in her seat and raising her pleated chin in fear and repeating what sounded to Sylvanshine like the word chump as veins stood bluely in the fist before her, in which was enclosed the crushed and bulbous but still unopened foil pack of off-brand nuts.