Applicable Law and Analysis The applicable tax law is Title 26 U.S. Code 162 which advises that “there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business”. (http://www.law.cornell.edu/uscode/text/26/162). Conclusion The $25‚000 is an allowable business expense deduction and will not be included in gross income. Issue (c): What is your determination regarding reducing the taxable amount of income
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In its tax returns‚ Branks Gilson & Lione always included the year-end bonuses as a deduction for officer compensation however after review‚ the IRS disallowed the deductions claiming they should be treated as nondeductible dividends. The issue that remained and that was discussed in this case was whether the petitioner was liable for accuracy-related penalties on the underpayments of tax relating to the deduction of year-end bonuses. After consideration the court ruled that the petitioner failed
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companies. Germany also has about thirty varieties of non income taxes that are imposed on such things as lotteries‚ inheritance and motor vehicles (Emerson‚ 2004). Germany imposes very high tax rates for its residents but they also allow for large deductions compared to the United States. Many think of Germany ’s tax system as complex but the country has done significant restructuring to simplify its taxes. American and German citizens would consider Germany to be dissimilar from the U.S.; however
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The estate of a deceased person is subject to the following deductions: 1.) Expenses‚ losses‚ debts and taxes: a.) Funeral expenses -must not be more than 5% of the gross estate and not more than Php200‚000 (doesn’t include expenses after the burial.) b.) Court expenses for testate (with a will) or intestate (without a will) proceedings (including extra-judicial settlement.) c.) Debts of the deceased where the papers of said debts are notarized when they were contracted. If the loan was made
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solutions manual Michael A. Dalton Thomas P. Langdon ME-Estates 5th INT 1P.indd 4 1/21/09 11:00:52 AM 1000 Riverbend Blvd. Suite A St. Rose‚ LA 70087 888-295-6023 Copyright© 2009 by ME. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means‚ electronic or mechanical‚ including photocopy‚ recording‚ or any other information storage and retrieval system‚ without prior permission in writing from the publisher. Requests for
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On March 28‚ 2008‚ Brandy Corporation first used its new air conditioning unit. Issues 1. What year should Brandy Corporation recognize the air conditioning unit was first put into service? 2. How much is their deduction for that year with regards to MACRS recovery deduction? Discussion and Analysis 1. Code Section 168(i)(6) provides the treatments of additions or improvements to property. It states that in the case of any addition to (or improvement of) any property‚ the applicable recovery
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FEDERAL INCOME TAXATION OUTLINE Gross Income Gross Income Defined (§61) – except as otherwise provided‚ gross income means all income from whatever source derived‚ including (but not limited to) the following items: Compensation for services‚ including fees‚ commissions‚ fringe benefits‚ and similar items; Gross income derived from business Gains derived from dealings in property Interest Rents Royalties Dividends Alimony and separate maintenance payments Annuities Income from life
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of Business and Accountancy COLUMBAN COLLEGE‚ INC. No. 1 Mt. Apo Street‚ New Asinan Olongapo City 2200 Tel. No.: (047) 222-3329 Telefax No.: (047) 222-7789 Website: www.columban.edu.ph DEDUCTIONS FROM GROSS ESTATE 1. Classify the following into exclusive deduction or conjugal/communal deduction. a. Funeral expenses b. Judicial expenses c. Loss of exclusive properties d. Loss of conjugal/communal properties e. Claims against exclusive properties f. Claims against conjugal/communal
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What is the policy behind the Truth in Lending Act? The declared policy behind the law is to protect the people from lack of awareness of the true cost of credit by assuring full disclosure of such cost‚ with a view of preventing the uninformed use of credit to the detriment of the national economy. Who are covered under the Truth in Lending Act? The law covers any creditor‚ which is defined as any person engaged in the business of extending credit (including any person who as a regular
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2012 standard deduction: “$5‚950 for single filers‚ $11‚900 for married joint filers‚ $5‚950 for married taxpayers filing separately‚ and $8‚700 for head of household filers.” More types of standard deduction for people over the age of 65 include: “$1‚450 for single or head of household filers‚ and $1‚150 for married filers.” This website stated that‚ “the standard deduction can be claimed on IRS Tax Form 1040‚ IRS Tax Form 1040A‚ or IRS Tax Form 1040E7.” Above-the-Line Deductions include: “student
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