Taxpayer received a tax-free benefit, perhaps a gift from a company that wanted to increase its business. Why must taxpayer have a fmv basis in the item?

Q: If a person is claimed as a dependant by another taxpayer, eligible tuition and expenses paid by…

A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…

Q: Among the highlights of train law, which do you think is advantageous for the taxpayer? Explain

A: Tax is the compulsory payment made by one person to its government.

Q: If you were starting a business, what tax considerations might cause youto prefer to set it up as a…

A: If one person had started his business as a sole proprietorship or a partnership then the revenue…

Q: Describe the difference between a tax credit and a tax deduction Which is more beneficial to the…

A: Tax Deduction/Credit Tax deductions lowers the amount of tax owed where as tax credit  reduce the…

Q: If taxpayers are not allowed to claim deductions for dependency exemptions, is it necessary to…

A: Income tax expense:   The expenses which are related to the taxable income of the individuals and…

Q: g. A municipal property tax on real estate is O regressive, and the incident is on the consumer if…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Why is the Donor's tax is the advantageous for the taxpayer? Explain

A: Donar's tax refers to the tax on a donation or gift. It is imposed on the gratuitous transfer of…

Q: Which of the following is subject to the creditable withholding tax system?

A: Creditable withholding tax is an advance income tax of the particular tax payee. This would mean…

Q: Which of the following is not subject to self-employment tax? a. Gain on the sale of real estate…

A: Self-employment tax: It is a tax levied on the income generated from self-employment. A tax of 12.4…

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…

A: The federal government developed the earned income tax credit (EITC) to help low-income and some…

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: yer. Whether taxpayers rent or own their residence. Taxpayer’s filing status (e.g., single, married,…

A: An itemised deduction is expense that can be deducted from adjusted gross income to lower  taxable…

Q: true or false. The relationship between the donor and donee is taken into account in determining the…

A: Solution Donation made between business organization and those made between an individual and…

Q: When is income recognized for a cash method taxpayer vs. an accrual taxpayer? Explain the hybrid…

A: Under the cash-receipts method, cash, property, or services are included in the taxpayer's gross…

Q: If qualified dividends are part of taxable income how do you find the tax liability? Do you have to…

A: Step1: Dividend income is taxable but it is taxed in different ways depending on whether the…

Q: If an individual is claimend as a dependent by another taxpayer, qualified tuition and expenses paid…

A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…

Q: For an accrual basis taxpayer, which of the following statements is TRUE  regarding prepaid income?…

A: In accrual basis of accounting, when any amount is received against a service which has not yet been…

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: A taxpayer is subject to income tax and capital gains tax. Partnership can be registered as…

A: Income tax is tax charged on income earned by the taxpayer during the relevant reporting period.…

Q: What are some of the other types of income that must be reported on an taxpayer's tax return? How is…

A: Taxable income is any remuneration received by a person or corporation that is utilized to evaluate…

Q: the tax payer's claimed capital allowance for a car that registered under his personal name and the…

A: Job of tax agent is quite difficult because people want to save tax but our job is quite difficult…

Q: How is Gross Income defined in the Tax Code and what are the implications to individual and business…

A: Hi, since you have asked multiple questions, we are answering the 1st question for you. To get the…

Q: Which one of the following is not true of itemized deductions of an individual taxpayer?…

A: The third option statement is incorrect, that is, residential interest is a common example of an…

Q: How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?

A: Under CREATE Law if the taxpayer is a domestic corporation the tax rate will be 25% for large…

Q: gift from a company that wanted to increase its business. Why must taxpayer have a fmv basis in the…

A: Gifts are exempt from tax up to a certain limit. Beyond this limit the taxpayer has to pay tax on…

Q: the capital gains tax if the proceeds of sale was utilized in acquiring new residence.

A: Capital gains tax is the tax which has to be paid by the earner of the gains and the tax have to be…

Q: e Commissioner can estimate the income and expense of a taxpayer.

A: The Commissioner is the supreme authority in Internal Revenue Service. His duty is to administer and…

Q: What are the tax implications of Social Security? Is it taxable at the Federal Level?, the State…

A: If you have other substantial income in addition to socoal security  benefits, then you have to pay…

Q: What is the purpose of the provision in the tax law that taxes unearned income of certain minor…

A: Kiddie tax is imposed on the children below the age of 17 years. It is the tax imposed on them if…

Q: When a person is claimed as a dependant by another taxpayer, qualified tuition and expenses paid by…

A: A tax dependent is a child or relative whose traits and relationship to you qualify you for tax…

Q: Does a sole trader have to register the business with the IRD for tax purposes in NewZealand? –…

A: IRD number is a tax tracking mechanism tool where the government checks up whether their citizen…

Q: All the profits of a sole proprietorship are taxed as current income of the owner even if they are…

A: Sole Proprietorship : in sole proprietorship the the business is run by only one person. The owner…

Q: Which is not correct?

A: This is a multiple-choice question in which we have to select the correct option.

Q: What do you believe led to the conclusion that a sole proprietorship should report its results on…

A: Sole Proprietorship: It is a type of  enterprise that is  run and owned  by one person  and there is…

Q: What will be the effect after To complete a successful tax-deferred exchange for the investor?

A: Tax Deferred : It refers to the instances when the tax payer delays payment of tax for some future…

Q: Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?

A: Tax Tax refers to the compulsory payment made by individuals or corporations to the government.…

Q: If taxpayer receives a benefit but has no choice regarding its consumption – the manager of a…

A: Taxable income: It is the portion of the income on which individual or company has to pay taxes to…

Q: Describe each of the various tax credits: Child Tax Credit, Earned Income Credit (EIC), Child and…

A: “Since you have posted multiple questions, we will be answering the first question only. In order to…

Q: In which of the following independent situations is the taxpayer entitled to deduct expenses related…

A: A home office is the use of a portion of home (say a room) for the purpose of doing office related…

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…

A: Investment income cannot be more than $3,500 for the 2018 tax year to claim the earned income…

Q: A sole proprietor  who earned a net profit from their  business  may be eligible  for whichbof the…

A: GIVEN DATA    A sole proprietor  who earned a net profit from their  business  may be eligible  for…