Seminar 1 Sat Questions
Chapter 1: 2, 5, 23, 29, 36
2. Marvin is the executor and sole heir of his aunt’s estate. The estate includes a furnished home, which Marvin is considering converting to rental property to generate additional cash flow/ what are some of the tax problems Marvin may confront?
Some tax problems Marvin may confront is the conversion from residential to income-producing will cause an increase in ad Vlore taxes on realty, which an attractive income tax result could be materially diminished by adverse property tax consequences.
5. How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages.
The pay as you go procedure requires employers to withhold for taxes a specified portion of an employee’s wages for someone who have income from sources other than wages they may have to make quarterly payments to the IRS for estimated taxes due for the year.
23. as to those states that impose an income tax, comment on the following:
A.”Piggyback” approach and possible “decoupling” from this approach:
“Decoupling” is when they erode certain recent tax reductions passed by congress because that state wants to retain their state revenue.
b. Deductibility of federal income taxes.
Most states allow a deduction for personal and dependency exemptions.
c. Credit for taxes paid to other states.
Most states tax those who regularly conduct business in the state.
29. Contrast FICA and FUTA as to the following:
a. Purpose of the tax.
FICA is a measure of retirement security and FUTA proves a source of income in the event of unemployment
B. upon whom imposed.
FICA is imposed on both employers and employee, FUTA is imposed on employers
c. Governmental administration of tax.
FICA is administrated by the federal government, FUTA is handled by federal and state
D. Reduction of tax based on a merit rating system
This applies to Futa
36. Asses the probability of an audit in each of the following independent situation
A. as a result of a jury
2. Marvin is the executor and sole heir of his aunt’s estate. The estate includes a furnished home, which Marvin is considering converting to rental property to generate additional cash flow/ what are some of the tax problems Marvin may confront?
Some tax problems Marvin may confront is the conversion from residential to income-producing will cause an increase in ad Vlore taxes on realty, which an attractive income tax result could be materially diminished by adverse property tax consequences.
5. How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages.
The pay as you go procedure requires employers to withhold for taxes a specified portion of an employee’s wages for someone who have income from sources other than wages they may have to make quarterly payments to the IRS for estimated taxes due for the year.
23. as to those states that impose an income tax, comment on the following:
A.”Piggyback” approach and possible “decoupling” from this approach:
“Decoupling” is when they erode certain recent tax reductions passed by congress because that state wants to retain their state revenue.
b. Deductibility of federal income taxes.
Most states allow a deduction for personal and dependency exemptions.
c. Credit for taxes paid to other states.
Most states tax those who regularly conduct business in the state.
29. Contrast FICA and FUTA as to the following:
a. Purpose of the tax.
FICA is a measure of retirement security and FUTA proves a source of income in the event of unemployment
B. upon whom imposed.
FICA is imposed on both employers and employee, FUTA is imposed on employers
c. Governmental administration of tax.
FICA is administrated by the federal government, FUTA is handled by federal and state
D. Reduction of tax based on a merit rating system
This applies to Futa
36. Asses the probability of an audit in each of the following independent situation
A. as a result of a jury