Is taxable interest income generated via active or passive investments, or through a portfolio of investments?

Q: How are the Capital al losses deducted from capital gains?

A: When an asset such as property for investment purpose (not for personal use), cars and investment…

Q: What is capital gain taxation?

A: Introduction:- Capital gain tax charged on Profits from the sale of an investment.

Q: What capital gains are subject to capital gains taxation?

A: The  сарitаl  gаins  tаx  is  the  levy  оn  the  рrоfit  frоm  аn  investment  thаt  is  inсurred…

Q: For an individual investor, investment in which one of the following accounts has the best…

A: An investment is liquid if one is able to convert it to cash at any point in time.

Q: What are arguments for and against preferential treatment of capital gains?

A: Capital gain defined as the increase in the value of the capital asset and it is realized when the…

Q: In what situations is interest capitalized?

A:

Q: Describe the procedures for determining after-tax net cash flows in taxable situations?

A: Net cash flow after tax is an important measure used for the purpose of evaluation of company's…

Q: advantage of offshore trust in terms of taxation?

A: High-net-worth (HNW) clients generally see offshore trust corporations as the pinnacle of competent…

Q: how do compute thesocial security taxable earnings?

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: What are long-term capital gains? Are they taxed like other income? Explain.

A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…

Q: Define taxable income

A: Taxable Income: The amount of adjusted gross income that is liable to be taxed is known as taxable…

Q: How can we determine ordinary gains and capital gains?

A: Answer: In the course of normal business, an ordinary gain is income. The gain or loss of foreign…

Q: What is the income under accrual basis?

A: Accrual basis is method used by the company to record its transaction in the books. In this method,…

Q: What is a taxable gift?

A: Gift tax: When a person transfers a property to another person without any consideration then such…

Q: Taxable interest income is active or passive or portfolio ?

A: Active income is an income that is earned by performing a service. Active income includes salaries,…

Q: Why is share in a considered a is perpetuit

A: In finance a perpetuity refers to that financial asset or that financial security that goes on…

Q: The value of property for tax purposes, usually a percentage of the fair market value is known as…

A: Appraisal value refers to that on a specific date, the specific property’s current market value is…

Q: How are leases classified for tax purposes?

A: The two main classifications of leases which an affect the tax treatment are Capital Lease or…

Q: What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital…

A: The question is related to Capital Gain head. Capital gain means any profit or gain arising out of…

Q: Explain Transfer of Property or a Beneficial Interest in Borrower?

A: The question is based on the agreement of Mortgage loan in real estate deal.

Q: Under what conditions should investments be classified as current assets? As long-term assets?

A: A current asset is a cash and other assets that are reasonably expected to be converted into cash…

Q: What is taxable income?

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

Q: What is the indicated value of the subject property using direct capitalization, rounded to the…

A: Direct Capitalization Method: This method computes the value by dividing the net operating income…

Q: What are the deductibility of real property taxes

A: Property taxes and real property taxes are interchangeable terms. They are levied on the majority of…

Q: Real property held for investment is a capital asset. True or false

A: Real Estate Property Held for Investment is A capital Assets.   Real estate property held for…

Q: erence between financial income and taxable income?

A: 7 Correct answer :- A Premium paid for officers life insurance   8 Correct answer :- C The…

Q: How is the taxable gains arc calculated?

A: Capital gain:   A capital gain is the profit resulting from the sale of capital asset as a stock,…

Q: Define after-tax cost of cost of debt

A: The amount that is raised by the company by issuing the bonds or borrowing from the financial…

Q: Which of the following dividend income is tax exempt? Dividend income received from

A: As per BIR, Dividend received by domestic or resident foreign corporation from another domestic…

Q: What is a Capital Gain Tax (CGT) Asset? Give at least one example for each of the three types of…

A: Capital gain tax asset is an asset which when sold, the gain will attract capital gain tax.  As per…

Q: How Grantor can Release from Assumed Debt?

A: Answer: Release of grantor from assumed debt: It is one of the assumptions of mortgage. When a…

Q: Explain the difference between the specific interest method and the weighted-average method in…

A: Interest capitalization:

Q: For an individual investor, investment in which one of the following accounts has the best…

A: Liquidity means converting assets easily into cash. A companies liquidity is the ability of the…

Q: Under what two conditions should investments be classified as current assets?

A: The investments should be classified as short–term investments if it satisfy the following…

Q: What is the definition of 'taxable income'?

A: Income: Income includes the income of an individual in the form of wages, salary, pension, etc. The…

Q: Which mathematial expression is used to calculate the after tax cost of debt?

A: Cost of debt: Cost of debt is the effective rate of interest that the firm pays on its present…

Q: What is the permanent difference between pretax accounting income and taxable income?

A: A permanent difference is a difference between pretax financial income and taxable income in an…

Q: Under IFRS, income includes increases in economic benefi ts from: B . enhancements of assets not…

A: International Financial Reporting Standards (IFRS):  International Financial Reporting Standards is…

Q: Explain the difference between pretax financial income and taxable income.

A: Pretax financial income: Income that is computed based on the records and documents presented by an…

Q: Taxable dividend income in the amount of $ Return of capital in the amount of $ Capital gains in the…

A: First, calculate the deficit on June 30: Deficit on June 30=Deficit in current…

Q: What will be the Effect of Interest Rates on the After Tax IRR on Equity?

A: "Financial leverage is a double edged sword". If the company is not managing its financial resources…

Q: Define each of the following terms:a. Interest tax shields; value of tax shield

A: tax shield is deduction ability to shield portions of the taxpayers income from taxation.