663 you decide Y O U D E C I D E | | Activity | 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 will have to be treated as ordinary employment income, subject to federal and state income taxes. b.
30% Withholding Tax Nonresident individuals earning rental income and other fixed and determinable annual or periodic income which are not effectively connected with trade or business are taxed at a flat rate of 30%, withheld by the tenant. Electing Business Income Option Nonresident individuals earning rental income can elect to consider this income as effectively connected with trade or business. Through this option, the taxpayer will be taxed on his net income at progressive rates. CAPITAL GAINS TAX Capital gains incurred for the transfer of property in Guam is taxed as in the US. The taxable gain is computed by deducting the acquisition costs (adjusted for inflation) and transfer costs from the selling price.
Earned income includes all the taxable income and wages one gets from working. According to the Internal Revenue Services (IRS), “taxable income includes wages, salaries, tips, union strike benefits, long-term disability benefits received prior to minimum retirement age, and net earnings from self-employment.” “A taxpayer's income can come from a number of sources other than regular employment, and can include exchanges of property or even bartering. Unless a type of income is specifically exempted from taxation by law, it will be considered taxable income” cited in IRS Publication 525. I am going to first talk about the individuals that are getting ready to prepare their tax return for the year ending 2009. I have a married couple who is looking to file a joint return.
Would this change your answer? Explain. c. The company plans to use a building it owns but is not now using to house the project. The building could be sold for $ 1 million after taxes and real estate commissions. How could that affect your answer?
. . 14 Part IV Total Losses Allowed 15 16 0 15000 Add the income, if any, on lines 1a and 3a and enter the total . . .
o Gross income and AGI • Gross income is every dollar you made for the year, the AGI is your gross income minus your adjustments such as your deductions such as your 401k contributions. o AGI and taxable income • Taxable income is what is left after someone adds up all income and subtracts their deductions. This is the amount subject to income taxes. AGI is always more than taxable income, it is calculated by taking the income and subtracting specific items and adding in other items like a gain on disposal of assets such as what usually happens when you sell a home. o Tax deduction and tax
See Excel Sheet b. Which types of analytical procedures did you use to determine the estimate? c. Suppose that you find that the interest expense account shows expense of $23,650 related to these notes. What could account for this difference? d. Suppose that you find that the interest expense account shows expense of $24,400 related to these notes.
Christopher Nelson Intermediate Accounting II Research Case 1 1. As of December 31, 2011, what amount, if any , of sales taxes due should be recognized in eVade’s financial statements? Assuming the financial statements for year ending 12/31/2011 have not been issued, an adjustment to sales tax liability can be recognized for the entire $25,000.000. As well, affected prior period statements will need to be re-stated. This is consistent with FASB codification ASC250-10-45-23 2.
The first safe harbor rule states that as long as the taxpayers quarterly payments equals 90% of what is due on the tax return they can escape a penalty. The second safe harbor allows the taxpayer to avoid a penalty as long as they pay 100% of the amount from the previous year’s tax return. If the taxpayer’s AGI exceeds $150,000, they must pay 110% of the previous year’s return. Chapter 3 (5 pts) Above-the-line, or For AGI deductions, are taken out before your AGI is calculated. Above- the-line deductions include alimony, student loan interest, and moving expenses.
If for instance, the corresponding error for 0.75 is 1.3, the optimal stock to keep for that item would be 1.3 * frozen forecast. Hence, this value is the stock for that item. 2) There are different scenarios to determine relevant costs and revenues. The first scenario is where (geographically spoken) the stock kept of a particular item is sold. In this case, all the costs related to buying and selling that product would be included.