The tax laws treat capital gains and losses differently from ordinary gains and losses. True or false

Q: Unrealized los

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: What do you think is the reason why governments grants "exclusion from the gross income

A: Possible reasons why government grants exclusions from gross income can be as follows.  1) To…

Q: what are the two tax rates whih are used to calculate AMT, ignoring the special treatment of…

A: A dividend seems to be the distribution of a part of a company's earnings to a selected group of…

Q: Income is taxable, unless specifically included in the IRS.  What are some examples of tax…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: What are some of the effects of the crypto-related activities on an individual's tax payable?

A: Answer:-  Cryptocurrency meaning:- A cryptocurrency is a kind of digital or virtual currency that is…

Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…

A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…

Q: Analysts should treat deferred tax liabilities that are expected to reverse as:A . equity.B .…

A: Option (B)is correct.

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: Deferred tax assets arising from the deductible temporary difference because of different treatment…

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: Real property tax is an example of a national tax. * A. True B. False

A: In United States, US taxes are generally levied by local government authority. This property tax is…

Q: Exclusion from gross income refers to income received or earned but is not taxable as income because…

A: Gross income is the total income of an individual without deducting any deductions or exemptions. It…

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: Contrast tax evasion and tax avoidance.  Which one is illegal, and which one is legal

A:

Q: What is the logic behind allowing tax loss carrybacks/carryforwards?

A: Logic behind allowing tax loss carrybacks and carryforwards: A tax loss carryback permits a company…

Q: . What is the possible treatment for tax purposes of a net operating loss? What is the proper…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: Why corporations are liable to pay double tax?

A: Tax is a charge which is paid on the taxable income towards government. For corporations tax is…

Q: What is the net tax consequences of these dispositions?

A: The disposition of the assets means sales, exchange, or donation of the assets. The disposition of…

Q: Give an argument in favor of taxes on wealth like the estate tax. What potential problems would…

A: Wealth tax:   It refers to the tax levied on the value of held assets. This will consist of the…

Q: A taxpayer can only qualify for a deduction for normal tax purposes (ignoring prohibited deductions)…

A: The General deduction formula explains the eligibility of the expense to be deducted from income.

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: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?

A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets.…

Q: What are the Sources of Tax Laws?

A: Tax: It is a mandatory fee levied by the government on the individual and organization.

Q: How is tax accounting different from financial accounting?

A: Accounting: It can be defined as the process of summarizing and recording the company’s financial…

Q: e from Tax Evasion?

A: The difference is given as,

Q: How does the disposition effect impact investor tax?

A: Introduction: The disposition effect is coined by economists Hersh Shefrin and Meir Statman in a…

Q: A corporation that claims the dividends received deduction may completely or only partly avoid any…

A: A deduction reduces the tax expense.

Q: If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized…

A: Claim of deduction in form of Capitalized and Depreciation If an entity opt for the deduction of…

Q: what is Tax Avoidance and Tax Evasion?

A: Tax avoidance refers to the use of legal means to avoid paying tax. Individual taxpayers and…

Q: What are the distinctions between deferred tax assets and deferred tax liabilities?

A:

Q: Which is not a feature of final tax? A. Covers certain passive income B. Covers all capital gains C.…

A: Solution Capital gain can be defined as any profit that is received through the sale of capital…

Q: Can the effective rate of tax be negative? Why? or Why

A: it is sometimes possible that effective tax may be negative.This is but rare cases but sometimes it…

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

A:

Q: Briefly explain what factors significantly affect tax avoidance

A: Tax avoidance is a mechanism through which a taxpayer takes advantages of the loopholes in the tax…

Q: What Is A Deferred Tax Liability And What Is Its Purpose?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: The tax that takes into account the status of the taxpayer

A: Status of the taxpayer means the classification of the taxpayers into groups based on age, structure…

Q: What is the meaning of “person” when the term is used in the Income Tax Act? _________, __________…

A: Person includes :  an Individual; a Hindu Undivided Family (HUF) ; a Company; a Firm an association…

Q: Briefly explain how tax loss carryback and carryforward procedureswork.

A: Loss carryback is a situation in which business is having operating loss in this year and it want to…

Q: Because income from fixed income assets is taxed at a higher income tax rate than capital gains and…

A: Capital gain is the revenue generated from selling the assets either long term assets and short term…

Q: difference between Tax Avoidance and Tax Evasion

A: The question talks about two terms : Tax Avoidance and Tax Evasion Hence. Let's first understand the…

Q: How might a reduction in future tax rates affect deferred tax assets in a way that reduces current…

A:

Q: How is a business activity distinguished from an investment activity? why is this distinction…

A:

Q: Some tax credits are referred to as refundable. What does this mean?

A: A tax may be referred as a “pecuniary burden laid upon individuals or property owners to support…

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

A:

Q: What is Deferred Tax Liability and why it might be created?

A: A deferred tax liability is the temporary differences which is created when there are differences…

Q: ous for the taxpayer? Explain

A: Meaning of Income Taxes Income taxes are the taxes which are paid on the income of an individual.…

Q: Tax avoidance is deliberately ignoring a specific provision in the Income Tax Ac True or False

A: Tax avoidance is the term which is defined as the legal use of the tax regime within the single…

Q: Explain two main reasons why expenses may not be deductible for income  tax/corporation tax purposes

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

Q: True or False

A: Long-term capital gains (LTCG): The gain an individual or an entity gets by selling the investment…