the taxpayer’s gross income in 2014. A check received is generally considered a cash equivalent and‚ upon receipt‚ must be recognized as income by a cash basis taxpayer. 28. $10‚000 @ 6% x 5 years = $13‚382. Tax at 28% on interest = $947‚ After-tax proceeds = $12‚435 $10‚000 @ 5.5% x 5 years = $13‚070. Therefore this bond is a better deal. The land needs to earn at least $3070 after tax to beat the tax-free bond. But tax at 15% will be levied on the gain. The before tax gain is 3070 / (1 - .15)
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Adam Smith’s Four Main Canons of Taxation ↓ A good tax system is one which is designed on the basis of an appropriate set of principles (rules). The tax system should strike a balance between the interest of the taxpayer and that of tax authorities. Adam Smith was the first economist to develop a list of Canons of Taxation. These canons are still regarded as characteristics or features of a good tax system. Adam Smith gave following four important canons of taxation. 1. Canon of Equity The principle
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Submit Form 15G or 15H to avoid Tax Deducted at Source Delayed tax refunds can be frustrating. After all‚ what can be worse than waiting for your own money to come back to you? This is why financial advisers suggest planning one’s taxes well in advance and avoid overpayment. The start of the financial year is‚ perhaps‚ the best time to do so. Submit the Forms 15G or 15H right away to avoid the tax deducted at source (TDS) on your investments‚ if your income is below the exemption limit. From this
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certain requirements perceived by the code‚ to wit: 1. Registration a. Accomplishment of Application for Registration FOR SELF-EMPLOYED AND MIXED INCOME INDIVIDUALS Tax Form BIR Form 1901- Application for Registration for Self-Employed and Mixed Income Individuals‚ Estates/Trusts Documentary Requirements For single proprietors‚ mixed income earners › Photocopy of Mayor’s Business Permit (or duly received Application for Mayor’s Business Permit‚ if the former is still in process with
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Termination and Retirement 1. Superannuation (LUMP 2. Superannuation (INCOME STREAM 3. Employment Termination Payments Unused sick leave‚ excess over tax-free redundancy‚ “golden hand shakes”‚ severance pay Cn’t be rolled over to a super fund 4. Unused Leave Payments 5. Redundancy Tax free amount=$8806+[$4404x year of completed service] [s83-175] Excess amount taxed as ETP Small Business Concessions & Depreciating Assets N.B. 1.Identical materials or substantially
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176‚790 305 306 307 308 317 401 10‚625 15‚725 23‚023 125‚000 19‚275 8‚750 15‚725 25‚000 Accrued interest Dividends payable Federal income tax payable Notes payable-short term State Income Tax Payable Notes payable-long term Total liabilities Owners ’ Equity: 501 Common stock 505 Other contributed capital 601 Retained earnings 605 Dividends 610 Current net income Total owners ’ equity Total liabilities & owners ’ equity E-1 E-1 E-1 E-1 F-1 46‚988 1‚400 365 340 438 #5 #6 #7 #8 #18 225‚883 416
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Taxes Dorothy Cartwright DeVry University Taxes As the owner of PSG Tax Services‚ Inc. it is my duty to provide the knowledge and understanding of taxes to my clients. This week I had the pleasure of meeting Jackson and Kara Erb. The newlywed couple showed drastic signs of having no knowledge of taxes or why the government issues taxes. A “tax can be defined as a payment to support the cost of government” (Jones‚ 2014). Taxes are implemented by our government to raise revenues
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100% Satisfaction Guarantee DESCRIPTION FOR THIS STUDY GUIDE: TUTORIAL: Includes solutions to accounting problems. Individual Assignment: Accounting Problems QUESTION 1 Don Walls’s gross earnings for the week were $1‚780‚ his federal income tax withholding was $301.63‚ and his FICA total was $135.73. • What was Walls’s net pay for the week? • Journalize the entry for the recording of his pay in the general journal. • Record the issuing of the check for Walls’s pay in the general
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Employees" Please respond to the following: After reviewing the scenario‚ identify at least three (3) key benefits that you could negotiate with your employer or potential employer that could reduce your tax liability. Provide specific examples of such benefits. 1) Increase the amount of income you contribute to your 401K For example: If your 401K is not fully funded the IRS’s annual limit is 17‚500 in 2014 and $18‚000 in 2015. 2) The Automobile Expense. 56 cents per mile driven for business purposes
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between an S corporation and a C corporation. The difference between a C corporation and S corporation is a C corporation pays corporate income taxes on profits and then the profits are distributed to the owners‚ whom are responsible for paying income taxes on these earnings. S corporations do not pay corporate taxes on profits‚ but they pass the entire tax liability onto the owners. The owners of an S corporation are limited to no more than 100 U.S. citizens. 1-6. You are a shareholder
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