HW 3 BUS 320
Tina Li
DQ #2-7, 2-9, 2-10, 2-11, 2-21
Problems #2-30, 2-42, 2-44, 2-49, 2-50, 2-52, 2-60
7. A) What determines who must file a tax return? Who must file is determined by an individual’s filing status, age, and earnings (income) they received that year. B) Is an individual required to file a tax return if he or she owes no tax? Yes, they are still required to file a tax return if they must file, even if he/she owes no tax.
9. Tax rules are often very precise. For example, a taxpayer must ordinarily provide “over 50%” of another person’s support in order to claim a dependency exemption. Why is the threshold “over 50%” as opposed to “50% or more?” A taxpayer cannot just provide half of the support, they must provide more than half of the support in order to claim someone as a dependent.
10. What is the normal due date for the tax return of calendar-year taxpayers? What happens to the due date if it falls on a Saturday, Sunday, or holiday? The normal due date is April 15, unless the Saturday, Sunday, holiday rule moves the date to the next business day.
11. Sometimes taxpayers may not be able to file their tax returns by the normal due date. Are extensions available? How long are the extensions? Do extensions enable taxpayers to delay paying the tax they owe? If you want an automatic six-month extension to file your tax return, you must file Form 4868, Application For Automatic Extension of Time To File U.S. Individual Income Tax Return, by the original filing deadline. However, you must pay any tax you estimate will be due by the original filing deadline or you may be subject to interest and penalties on overdue taxes. Your actual return will be due on October 15, unless the Saturday, Sunday, holiday rule applies and moves the date to the next business day.
21. A) What assets are excluded from capital asset status? Excluded from capital assets are certain items stated in the IRC, for example 1) trade or business property subject to depreciation
DQ #2-7, 2-9, 2-10, 2-11, 2-21
Problems #2-30, 2-42, 2-44, 2-49, 2-50, 2-52, 2-60
7. A) What determines who must file a tax return? Who must file is determined by an individual’s filing status, age, and earnings (income) they received that year. B) Is an individual required to file a tax return if he or she owes no tax? Yes, they are still required to file a tax return if they must file, even if he/she owes no tax.
9. Tax rules are often very precise. For example, a taxpayer must ordinarily provide “over 50%” of another person’s support in order to claim a dependency exemption. Why is the threshold “over 50%” as opposed to “50% or more?” A taxpayer cannot just provide half of the support, they must provide more than half of the support in order to claim someone as a dependent.
10. What is the normal due date for the tax return of calendar-year taxpayers? What happens to the due date if it falls on a Saturday, Sunday, or holiday? The normal due date is April 15, unless the Saturday, Sunday, holiday rule moves the date to the next business day.
11. Sometimes taxpayers may not be able to file their tax returns by the normal due date. Are extensions available? How long are the extensions? Do extensions enable taxpayers to delay paying the tax they owe? If you want an automatic six-month extension to file your tax return, you must file Form 4868, Application For Automatic Extension of Time To File U.S. Individual Income Tax Return, by the original filing deadline. However, you must pay any tax you estimate will be due by the original filing deadline or you may be subject to interest and penalties on overdue taxes. Your actual return will be due on October 15, unless the Saturday, Sunday, holiday rule applies and moves the date to the next business day.
21. A) What assets are excluded from capital asset status? Excluded from capital assets are certain items stated in the IRC, for example 1) trade or business property subject to depreciation