Answered: 43. True or False. If the debt is…

43. True or False. If the debt is canceled due to services rendered by the debtor, the basis of tax is the value of the service rendered.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 4DQ: Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or...

See similar textbooks

Related questions

Q: f a business owner paid for the business expenses with their personal account, and those expenses…

A: Business expenses are the rightful expenses which can be deducted on tax return as these expenses…

Q: What is the income that will not be taken into account in the determination of the Financial Profit…

A: This question deal with the answer of which income will not be taken into account while determining…

Q: A taxpayer received Form 1099-A with box 5 checked, indicating recourse debt. This informs the tax…

A: Form 1099-A includes the particulars relating to transfer of a property that is already disclosed.

Q: All forms of tax escape will result to loss of government revenue. True or False. Kindly Explain…

A: Tax is a revenue for the government.

Q: Which of the following can be deducted as interest expense? Interest on personal debt Interest on…

A: Interest on personal debt imputed interest on capital interest on assessed tax delibquency…

Q: I understand the calculations portion of it but im confused with the final income tax refund amount.…

A: Tax refers to the amount charged by the government to the individuals and the organizations on the…

Q: True or False Excluded income will never be

A: Excluded income can never be subject to federal tax. The comprehensive definition of income means…

Q: True or false: After calculating your income taxes, you may find yourself owing to the IRS instead…

A: A tax is a governmental organization's mandatory financial obligation or another form of levy…

Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)…

A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for…

Q: Why would a taxpayer file a tax return if not required to do so?

A: A person is required to file the income tax return as per their respective country’s taxation law.…

Q: The amount of taxes generated is incorrect...

A: Section 1245 assets comprise personal property used in trade or business and held for over 12…

Q: What are the expenses that will not be taken into account in the determination of the Financial…

A: Solution : What are the expenses that will not be taken into account in the determination of the…

Q: current and future tax consequences of transactions accounted for

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: taxpayer has no obligation to pay more taxes than are legally owed, and a [CPA] has a duty to the…

A: Standards for tax services are the standards that describe the responsibilities that CPA’s have…

Q: While earnings on assets held in a Tax Free Savings Account (TFSA) will not be taxed while the…

A: False

Q: As You Read QUESTION What could happen if your employer did not deduct federal income taxes from…

A: Introduction:- A paycheck, also known as a paycheck is a paper document issued by an employer as…

Q: TRUE OR FALSE? 1st statement: MCIT will be imposed if the company's business operation resulted in…

Q: How do you call a deductible temporary difference? a. Current tax asset. b. Deferred tax asset.…

A: As per IAS 12 The amount of the income taxes which will be Recoverable in future period in respect…

Q: Which is NOT true? a.Deductions partake the nature of an exemption b. Exemptions are strictly…

A: Tax deductions are defined as the deductions that are used to lower the tax liability of a person or…

Q: A deferred tax account is classified on the balance sheet as: A net noncurrent amount A net current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: sset. a. TRUE b. FALSE

A: Solution: True. This is because Income tax benefit will decrease the current ta eapense means tax…

Q: 14. If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise…

A: Distraint and levy cannot be simultaneously.

Q: remedy in recovering the overwithholding? a. Claim the overwithholding as tax credit for the year b.…

A: Tax is a liability for the company calculated on the income earned by the company and paid to the…

Q: Taxpayers can deduct a nonbusiness bad debt beginning in the year it is deemed partially worthless.…

A: If a debt relating to a company or occupation has been irrecoverable in the previous financial year,…

Q: All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the…

A: A company's financial statements are a collection of summaries of its monetary performance,…

Q: Discuss actions a taxpayer can take if it is anticipated that his income taxes will be substantially…

A: Underpaid Tax situation usually arrives when the taxpayer is not paying the estimated tax amount.…

Q: Withholding is: b. A method by which the government collect taxes at the time of its A method of…

A: Taxes are the dues and liabilities which needs to be paid by the individual to the government on…

Q: When accounting standards require recognition of an expense that is not permitted undertax laws, the…

A: Temporary differences incur when there is a difference between the tax base and the carrying amount…

Q: The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain.

A: Tax: A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization to…

Q: Vhich of the following allow a tax filer to legally reduce the amount of tax owed? Select all that…

A: Question 4: Legal Exemptions/deductions/Credits available to the tax payer are: a) The Standard…

Q: Which of the following statements is incorrect? Assume that the rental activity is classified as…

A: Answers

Q: the process of reducing the allowable deduction of interest expense by a certain percentage is…

A: the process of reducing the allowable deduction of interest expense by a certain percentage is…

Q: Which is not a source of federal revenue? Employment taxes Estate and gift taxes Taxes on…

A: Taxes are the compulsory payment made by the assessee to the government. For example , income tax ,…

Q: Are they entitled to a refund or do they owe additional taxes?

A: Tax Liability is the different company's taxable income as shown in the income statement and in…

Q: Why is the income tax payable not the same as income tax expense

Q: 1.Determine the business tax applicable for the following independent assumptions. Put a check mark…

Q: Briefly explain the precise difference between a refundable vs. a nonrefundable tax credit. Provide…

A: A refundable tax credit is a tax credit that is refundable. First, a refundable tax credit is used…

Q: Tax preparers may be assessed a penalty for failing to give the taxpayer the preparer's workpapers.

Q: 1. Which of the following statements is true? A. Payments which constitute bribes, kickbacks and…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: May the taxpayer's liability to pay tax be a subject of set-off? Why?

A: May the taxpayer's liability to pay tax be a subject of set-off? Why?

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are reported for…

Question

43. True or False. If the debt is canceled due to services rendered by the debtor, the basis of tax is the value of the service rendered.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
If the IRS owes a taxpayer a refund, the law generally provides that the IRS must pay interest on the refund if it is not paid within __________ days of the tax-payer filed his or her tax return or claim for refund. 30 45 60 90 None of the above
Can any nonrefundable credits, other than the foreign tax credit, reduce the regular income tax liability below the amount of the TMT? Explain.
LO.3, 8, 9 The taxpayer has generated excess capital losses (both short-term and long-term) for the current year. Discuss the income tax ramifications of the losses if the taxpayer is: a. An individual. b. A C corporation. c. An S corporation. d. A partnership.
Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or progressive tax? Explain, and state how the tax might be viewed differently.
26. Specific provisions for bad debts are deductible for tax purposes once the taxpayer is able to demonstrate that reasonable steps were taken to collect the debts. Select one: True False
All are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed
A taxpayer received Form 1099-A with box 5 checked, indicating recourse debt. This informs the tax preparer that: a) There may be taxable income associated with this event. b) There cannot be taxable income associated with this event. c) This document is not reporting cancellation of debt income, so this is not relevant unless a Form 1099-C is also received. d) There can be capital gain from this event, but not ordinary income.
In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In some cases, making such contributions may result in avoidance of tax. Explain these statements.
39a What is the income that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be added to the profit? a) Commercial Profit B) Tax Exempt Earnings NS) Taxable Earnings D) Disallowable expenses TO) Legally Accepted Expenses
All are true except: OSD is a substitute for itemized deduction. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed.
True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.