Essay about Tax problem

1040 WordsOct 31, 20135 Pages
Homework 1 – Chapter 1 1. In the following independent situations, is the tax position of the tax payer likely to change? Explain why or why not. a) Yes, this is likely to change John’s tax position because of capital gains and losses on the disposition because of property now convert to ordinary income and losses. b) Yes, this is likely to change Theresa’s tax position because now she is self employed and has to deal with the safe harbor of withholdings is lost and new quarterly payments on income and self employment taxes must be made. c) Paul purchased a personal residence will have a tax position change because you will have a new mortgage interest and property tax deductions cause the standard deductions to be replaced by…show more content…
liquor store license; taxicab permit , fee to practice law, medicine or accounting) d) Customs duties – tariff on certain imported goods, - provided most of the revenues needed Federal Government e) Export duties – tariff on certain export goods 41. No,she is not entitle to interest because returns filed early are deemed to have been filed on the due date, which is April 15, 2013. 42. a) My advice to Andy is to do an amended tax return to the year he inadvertently omitted the gross income. b) No, because that is the right thing to do. c) Yes, I would do his return if he listen to me on the first two questions. 47. a) Revenue neutrality – every new tax law that lowers taxes must include a revenue offset that makes up for the loss. b) pay-as-you-go or paygo – same as revenue neutrality c) sunset provision – tax reduction can be limited to a period of years. When the period expires, the prior law is reinstated d) indexation – is based upon the rise in the consumer price index over the prior year 50. a) Social Consideration - A tax credit is allowed for amounts spent to furnish care
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