Alternative minimum tax (AMT) was created in 1969 by the Tax Reform Act to make certain that high-income individuals‚ corporations‚ trusts‚ and estates pay at least some small amount of tax‚ in spite of any deductions‚ credits‚ or exemptions. It’s basically an alternative method used by the IRS for calculating your taxes‚ an extra tax that was an addition to regular income tax. To calculate your AMT you start with your AGI (adjusted gross income)‚ then you give back the “tax preference items” and
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Taxable income (the starting point for calculating AMTI) is net of the U.S. production activities deduction. For that purpose the deduction is 6% (in 2008 and 2009‚ 9% in 2010) times the lesser of qualified production activities income or taxable income before the deduction. For AMTI purposes‚ the computation is based on the lesser of qualified production activities income or AMTI before the deduction. The U.S.
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Introduction This lesson deals with income‚ which falls under the head ‘Income from house property’. The scope of income charged under this head is defined by section 22 of the Income Tax Act and the computation of income falling under this head is governed by sections 23 to 27. All the provisions relating to tax treatment of income from house property are explained in this lesson. Objectives After going through this lesson‚ you will be able to understand: The meaning of house property
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Payroll In a company‚ payroll is the sum of all financial records of salaries for an employee‚ wages‚ bonuses and deductions. In accounting‚ payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting perspective‚ payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations. Definition
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by presenting credibility‚ and in this case it was medical officers and regime of Medvegia. Logos is also used throughout the work to persuade the reader that vampires are the culprit for the villagers deaths. This is presented with evidence and deduction‚ and a clear example of this is the body of Arnold Paole. It was believed that Paole had been troubled by vampires during his life and he appeared to have been affected by vampirism in his grave. When the villagers attempted to kill him with a stake
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which seek to provide answers to these questions (Cottingham‚ 1988). Empiricism perceives that the development of concepts and ideas are dependent on the senses (Markie‚ 2008). Alternatively rationalism ascertains that reasoning‚ intuition and deduction are the ultimate vehicles to acquiring knowledge‚ not sensory experience. These theories do not necessarily exist in opposition of each other‚ but can co-exist to describe how one views the acquisition of knowledge in different fields (Markie‚ 2008)
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1. Filing Status: Married filing jointly 2. Self-Employment Income Income from consulting practice 12‚000 Expenses: Travel 850 Postage 600 Office supplies 500 Client lunches (780 x 50%) 390 Depreciation – old computer using half-year convention: (1‚800 x 11.52% x ½ ) 104 Depreciation – new laptop using mid-quarter convention: (1‚200 x 5%) 60 2‚504 Self-employment income 9‚496 3. Self-Employment Tax and Deductible Portion of
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WHAT IS TAX PLANNING ? Tax planning is an essential part of your financial planning. Efficient tax planning enables you to reduce your tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions‚ deductions rebates and allowances while ensuring that your investments are in line with your long term goals. Tax-planning amounts to making investments or contributions in line with prescribed guidelines that lead to reduction in tax liability. Simply put‚ the tax liability
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refund of state income taxes that they paid last year. How much of the refund‚ if any‚ must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $11‚600. a. b. c. Last year L. A. and Paula had itemized deductions of $10‚200‚ and they chose to claim the standard deduction.
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$40million in securities‚ $7.5 million of multiple properties and $2.5 million of cash. Their expected wages for the year was $10 million. In 2013‚ The Bradleys’ has incurred expenses of $1.2 million in item of deduction but were subject to limitation on itemized deduction and their deduction was reduced by $291‚000. The Bradleys’ was thought about how they want to dispose their $50 million estate. Two years ago‚ their daughter has diagnosed with breast
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