The terms active income and earned income are often used interchangeably. For this to be active involvement the activity must be heavily used with the explicit purpose of gaining income. Passive Income -This is income earned through a trade or investment in which the individual does not spend much time or effort. If this is the regular employment of the individual for which we are directly compensated it would be active income. Portfolio Income -This type of income is derived directly from investments such as stock Earnings, mutual fund investments, or interest income.
The loan would take the form of a secured loan. Panna has £3000 in a variable rate online instant access account with her building society, currently earning 3 per cent p.a. after tax. She has no other savings. She also has the possibility of taking an unsecured loan from her own bank of £3000 where the variable APR charged is currently 12 per cent.
Balance sheet, cost-of-goods-manufactured schedule 10. Income statement 11. Income statement 2. The asset that differs among these businesses is inventory. Service businesses typically carry no (or very little) inventory.
After reading the text, it was shocking to see that over the past 30 years give or take a few, that there was only three years when the government was in a budget surplus. The last topic that our team learned and discussed was the difference between individual debt and government debt. The government does not have to pay back their debt, because it will never die. The government will continue, unlike an individual. When an individual passes away and before his or her heirs receive any money all debts must be paid, unlike the government (Colander, 2010).
Defined benefit and defined contribution are the two main types of employer retirement plans . Defined benefit plans were at one time the mainstay of company retirement plans but are not as popular as they used to be. Defined contribution plans are becoming more common, because they are less expensive for employers to administer. Each plan has its advantages for the employer and employee. A defined-benefit plan, also called a pension, is a plan that pays you a specific amount of money, either per month or in a lump sum, when you become eligible for retirement benefits .
1. Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2012: Received in January 2012 rent that was $5,000 due in December 2011 Received in December 2012 rent not 4,000 due until January 2013 Security deposit which is to be 500 refunded when tenant vacates the apartment How much rental income must Billy Dent include on his 2012 income tax return? 2. Arnold and Barbara Cane were divorced in June 2012. Pursuant to the divorce decree, Arnold is obliged to perform as follows: a.
Conversely, it adds the amount of decrease in assets to the net profit to arrive at the cash from (used for) operating activities. The amount of increase in liabilities (such as accounts payable) are added while decreases are subtracted from the net profit to calculate the cash from (used for) operating activities. c) The cash paid for the business combination is shown in the investing activities section on the statement of cash flows. d) GE did not have any Noncontrolling subsidiary interest or acquired in-process research and development cost. It would have recorded them in the investing section of the Statement of Cash
Nate Piche Employee or Independent Contractor? When choosing whether to classify a worker as an independent contractor or an employee the employer has many tax related and non-tax motivations to choose the former. The biggest motivations are the many taxes that the employer will not be responsible for withholding if they choose to classify a worker as an independent contractor. One of the largest responsibilities of an employer is the role it plays as tax collector for the government. If an employer is able to classify its worker as an independent contractor rather than an employee they would not have to worry about withholding federal income tax, FICA taxes, FUTA taxes, and state income taxes.
Memo To: John & Jane Smith From: Date: 12/2/2014 Re: Summary of various tax issues Your first question is how is the $300,000 treated for purposes of federal tax income? In Code 61(a), income derived from services is one of the listed forms of taxable income. This includes fees, commissions, fringe benefits and similar items. Since the compensation was earned this year, even though you worked on the case for two years, you will include it as ordinary income this year. You can reduce your tax liability by deducting necessary business expenses that were paid in the same
Exempt Status Exempt employees are workers who are paid a salary and are not afforded the same protections under the Fair Labor Standards Act overtime regulations provided to hourly, or nonexempt, workers. FLSA rules explain the process for determining whether employees are exempt or non-exempt. One of the determining factors is a test that uses a minimum weekly salary threshold. When an employee is paid a salary that exceeds this threshold and is compensated for quality and performance, rather than hours worked or strictly measured productivity, that employee is generally considered exempt. Exempt or Nonexempt.