client’s AMT burden; this can be done through state withholding estimates‚ property tax payments and converting to a Roth IRA plan. The Alternative Minimum Tax (AMT) was created in 1969 to ensure that ‘wealthier’ people who benefited from more itemized deductions and credits pay a minimum amount of tax. The AMT is calculated separately from an individual’s ‘1040 taxable income’ and disregards certain (primarily business-related) tax credits‚ thus increasing an individual’s tax liability. Generally speaking
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| |New | | | 6 |LO 1 |“Deductions for”: meaning and various designations | |New | | | 7 |LO 1‚ 8‚ 9 |Effect of AGI on some deductions from | |Unchanged |6 | | 8 |LO 2 |Choice between standard deduction and itemizing; variables | |Modified |7 | | |
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00 | | Total | | 1.00 / 1.00 | | Question 5 A Defined Contribution plan is limited in: Your Answer | | Score | Explanation | The amount that can be contributed annually | ✔ | 1.00 | | Total | | 1.00 / 1.00 | | Question 6 Itemized deductions on your income taxes are not allowed for: Your Answer | | Score | Explanation | Gifts to your spouse | ✔ | 1.00 | | Total | | 1.00 / 1.00 | | Question 7 The United States Social Security Administration has which of the following
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Fees vary but average about 2.5 percent of the tax payment (IRS.gov). Are These Fees Themselves Deductible? Explain. Credit and debit card convenience fees charged for paying federal individual income taxes are deductible as miscellaneous itemized deductions subject to the 2% floor for taxpayers who itemize (RIA 16181 Tax Liability). Summarize Your Findings In A Memo For The Tax Research File October 3‚ 2014 TAX FILE MEMORANDUM From: Subject: John and Martha Stewart Convenience Fees:
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PAMANTASAN NG LUNGSOD NG MAYNILA (University of the City of Manila) Intramuros‚ Manila Bureau of Internal Revenue (Government Rules and Regulations Trade Policies and Practices & Fiscal Policy) By: Nerissa S. Arcega Marie Catherine T. Manarpiis Bureau of Internal Revenue (Government Rules and Regulations Trade Policies and Practices & Fiscal Policy) Bureau of Internal Revenue - is an attached agency of the Department of Finance. It collects more than one-half of the total revenues
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$30‚000 of income‚ and he spends 320 hours managing the lab. Issues: 1. How to reduce Dr. Kevorkian’s tax liability? 2. Should Dr. Kevorkian invest more time in the laboratory‚ making that an active income activity? Analysis: § 465 Deductions limited to amount at risk. Dr. Kevorkian invested $100‚000 in Limited‚ a passive activity; in 2010 but he is not a material participant; should he invest more time in the laboratory that he set up for himself it would change the definition from
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regardless of the result of business whether there is income or loss; hence‚ the ITR of irrevocable trust should be filed if its income is P20‚000 and below. 2. True 3. True 4. True 5. False – The income is taxable. 6. True 7. True 8. False – special deduction related to amount distributed to beneficiary is not allowed when a trust is administered in a foreign country. [Sec. 61 (C)‚ NIRC] 9. True 10. False – Since the trusts are irrevocable‚ their income should not be combined with the income of the trustor
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mentions in the article “And it would hit people like me: taxpayers in higher brackets who rely on earned income as opposed to investment income or an inheritance‚ who give to charity and live in a high-tax state. Assuming a $35‚000 limit on itemized deductions‚ my federal tax last year would have risen to 27 percent of my adjusted gross income‚ from 22 percent”‚ a critical reader would consider the tone the author displays before taking in all the information as facts. Stewart seems to be one sided
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miles round trip). How much‚ if any‚ of this mileage can Rod claim as a deduction? (Show calculations.) ANS: 30 miles for each day of the audit assignment. Question 2. 25 pts (Show calculations for each of three parts.) Virginia had AGI of $100‚000 in 2013. She donated Amber Corporation stock with a basis of $9‚000 to a qualified charitable organization on July 5‚ 2013. a. What is the amount of Virginia’s deduction‚ assuming that she purchased the stock on December 4‚ 2012‚ and the stock
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True / False Questions 1. Increased demand for a product or service will usually result in lower prices for the item. FALSE 2. Inflation reduces the buying power of money. TRUE 3. When prices are increasing at a rate of 6 percent‚ the cost of products would double in about 12 years. TRUE 4. A decrease in the demand for a product or service may result in a decrease in wages for people producing that item. TRUE 5. A financial plan is another name for a budget.
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