FEDERAL INCOME TAXATION OUTLINE Gross Income Gross Income Defined (§61) – except as otherwise provided‚ gross income means all income from whatever source derived‚ including (but not limited to) the following items: Compensation for services‚ including fees‚ commissions‚ fringe benefits‚ and similar items; Gross income derived from business Gains derived from dealings in property Interest Rents Royalties Dividends Alimony and separate maintenance payments Annuities Income from life
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With respect to the prepaid income from services which of the following is true? The treatment of prepaid income is the same for tax and financial accounting. An accrual basis taxpayer can spread the income over the period services are to be provided if all of the servidcdes will be completed by the end of the tax year ^^^answer The effects of a below-market loan for 450‚000 made by a a corporation to its chief The corporation has imputed interest income and compensation expense. As a
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INTRODUCTION A tax policies represent key resource allocator between the public and private sectors in a country. It is usually imposed on individuals and entity that make up a country. The funds provided by tax are used by the states to support certain state obligations such as education systems‚ health care systems‚ pensions for the elderly‚ unemployment benefits‚ and public transportation. A nation’s tax system is often a reflection of its communal values or the values of those in power. To
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Sin Tax Bill (For the Government) OVERALL SUMMARY: According to James Sadowsky‚ author of The Economics of Sin Taxes‚ taxes imposed on products seen as vices such as alcoholic liquors and tobaccos are called sin tax. Aside from the commodities being objects of disapproval‚ even their consumers accept such taxes because they seem to hit two birds in one stone. First‚ they raise revenues and second‚ they made vices expensive. House Bill 5727 or also known as the Sin Tax Bill aims to reform the
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taxed differently from new ones. * Because of multi-tiered tax structure‚ smokers tend to prefer cheaper cigarette brands. According to the statistics provided by the Bureau of Internal Revenue (BIR)‚ consumers downshifted from medium-priced cigarettes to low-priced cigarettes. In the case of alcohol‚ consumption of low-priced beers ballooned from less than 40% in 1994 to more than 70% in 2010. * As tax is affected by inflation‚ tax burden decreases due to lack of price indexation. * The
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The Tax Research Process The overriding purpose of tax research is to find solutions to the tax problems of one’s clients or employer. The process is similar to that of traditional legal research. The researcher must find authority‚ evaluate the usefulness of that authority‚ and apply the results of the research to a specific situation. One can identify two essential tax research skills: * The first is using certain mechanical techniques to identify and locate the tax authorities that relate to
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invoices‚ not hard coded by vendor or account number‚ and apply a tax code unique to the shipping state which would then allow the Legacy system to make a tax determination. When Milliken transitioned to SAP‚ we began using Vertex to automate this decision based on the “material group” assigned to the individual line item on the purchase order. Material groups define what the item is and how it’s used. Vertex would then make a tax decision based on the material group and the jurisdiction of the
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288A) 3‚25‚000/- Deduction under Chapter VIA (W.N.3) Computation of Tax Payable by Mrs Rani for the Assessment Year 2013-14 PARTICULAR Tax at Normal Rate (W.N. 4) Tax at Special Rate (W.N. 4) AMOUNT 11500/3000/- Total tax 14‚500/- Add: Education Cess 2% Add: SHEC 1% 290/145/- Tax including Cess Relief 14‚935/0/- Tax Payable TDS/TCS/ Advance Tax 14‚935/3‚000/Self Assessment Tax u/s 140A 11‚935/- TAXABLE INCOME(Round off U/s 288A) 11‚940/- W.N
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SIN TAX (HOUSE BILL 5727) SHOULD BE LAGALIZED IN THE REPUBLIC OF PHILIPPINES (+) In partial fulfillment of the requirements Of the subject PHIN11A Submitted by: Ceejay Martinez Abby Padua Merene‚ Myka Kim Villareal‚ Peter James On October 3‚ 2012 To: Ms. Violeta Tabin PREMISES 1. Smoking cigars and drinking liquors are bad to health. 2. Number of accidents will be lessen. 3. Lessen the number of users. 4. It may cause air pollution. 5. It may stop the production of cigars and liquors
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►Progressive/graduated tax Generally‚ rates increase as income increases ►Federal income taxes ►FORMULA: ►Income (very broadly inclusive) ►LESS: Exclusions (income not subject to taxation) ►EQUALS Gross income ►LESS: Deductions for adjusted gross income ►EQUALS Adjusted gross income ►LESS: Greater of itemized deductions or standard deduction ►LESS: Personal exemptions ►EQUALS Taxable income ►MULTIPLIED BY: Tax rate ►EQUALS Tax owed ►LESS: Tax credits ►LESS: Tax prepayments/withholdings
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