Shared administration: state and local officials implement federal policies but have administrative powers of their own. (ex: Dept. of Labor gives money to states for job retraining, but states get to say how to spend it) 9. What is meant by “cross-over sanctions” and “cross-cutting requirements”? Cross-over sanctions: using federal dollars in one program to influences state and local policy in another (strings attached, hwy/drinking age) Cross-cutting requirements: when a condition on one federal grant is extended to all activities supported by federal funds, regardless of their source (if you don't follow the requirements, you don't get the money) 10.
A positive side to these transfer taxes is that “it takes lifetime transfers into account to determine the tax on assets transferred at death” (Spilker, Ayers, Robinson, Outslay & Worsham, 2013, pg. 25-3) Gift taxes are in a sense a prepayment of the estate tax. Despite the disagreements about the estate and gift taxes, the government does provide certain ways around these taxes. Most taxpayers will not actually have to pay an estate tax
When a taxpayer lives in more than one residence during the year, the determination of which residence is the principal residence depends on the facts and circumstances. Factors to consider in making this determination include the amount of time the taxpayer spends at each residence during the year, the proximity of each residence to the taxpayer’s employment, the principal place of abode of the taxpayer’s family, and the taxpayer’s mailing address for bills and correspondence among other things. 2. [LO 1] What are the ownership and use requirements a taxpayer must meet to qualify for the exclusion of the gain on the sale of a residence? Ownership test: The taxpayer must have owned the property for a total of two or more years during the five-year period ending on the date of the sale.
To receive benefits, most programs have a set financial standard based on many things such as income earned in the household, age of the person applying, if the person applying is married, and if there are children in the household. Many things need to be verified and there are different categories that are looked at to determine if a person is eligible. The high standards and guidelines are set so strictly due to welfare abuse, which has threatened the credibility of the entire system. (What is welfare fraud, usgovernmentspending.com.) One common tool welfare workers use to estimate household earnings are to measure them against the standard of living.
Local tax rates, equivalent VAT, and interest rates need to be taken into account. The country’s inflation rate needs to
Employers can choose from a variety of investments such as company stocks, diversity stock market funds, or federal government bond funds. Companies can take a take deduction for their contributions such as in profit sharing plans. Section 401(k) plans has employer tax benefits where employers deduct their contributions to the plan from a taxable
The government uses the CAFR along with a budget document to compare the total financial standing to the general purpose annual budget with everything The CAFR shows the total of all financial accounting the basic general purpose budget reports so that these report are not used along with any other miscellaneous uses, such as investment accounts included in government budget. The responsibility is exercised by Harris County Commissioners Court, but not all the financial information of Harris County is not within the scope of Mental Health and Mental Retardation Financial Statement. MHMRA of Harris County, is included as a component unit under the general purpose financial statements of Harris County because of the County’s ability to significantly influence its operations. The definition of the reporting entity is based primarily on the notion of financial accountability. A financially accountable organization makes up a legal entity.
This form is used by the IRS to determine whether the private foundations are in alliance with the Internal Revenue Code and Tax Reform Acts or not. The form requires the foundation to list the foundation’s assets, receipts, expenditures, compensation of officers, and grants made during the year. (Gund, 2009) Since this stakeholder has the most influence on whether the program is passed or denied, they are critically extensive in their evaluations of proposals and approval of grants. Since the funding institution only has a limited amount of money they must be very literal and detailed on who will be receiving service and how many people it will benefit. The George Gund Foundation funds programs that enhance cities in the arts, economic development, education, environment, human services, special
Briefly describe the financial planning model and outline what it is designed to achieve. Give an example of a change in the social and economic context and an example of a change in an individual’s life course which might impact upon the ‘assess’ stage of an individual’s financial planning. The financial planning model aim is to achieve an end goal(s) (Brown and Shipman, 2012). Goals do not always have financial implications, but many do. The goals that people create can vary on many factors, from the social background, religious beliefs, economic factors etc.
There are many sources of funding that is used at state and local levels, such as government taxes, nonprofit organizations, and private donations. There are disadvantages and advantages to having a financial contingency fund. A contingency plan is also referred to as a worst-case scenario planner, an uncontrollable events planner, or a disaster recovery plan (Tatum, 2003). A contingency plan is a plan that allows for the government, business, or a family to prepare for unexpected future breakdowns and events. Contingency plans are implemented to continue on without little or no interruption or interference.