Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 5, Problem 21CE
To determine
Identify Person M’s foreign earned income exclusion.
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The 2019 tax brackets in France are given in the table.
Gabriel has a taxable income of €36,700 (for reference, this is above the French national average). Let's calculate his tax bill.
The first €9,964 of his earnings are untaxed.
€27,519 - €9,964 = €17,555 is taxed at the 14% rate.
€36,700 - €27,519 = €9,181 is taxed at the 30% rate.
For each of these 'chunks' of his income, let's calculate the tax owed by multiplying the tax rate by the number of euros taxed at that rate.
The 0% chunk: .00 * €9,964 = €0
The 14% chunk: .14 * €17,555 = ? (you figure this out)
The 30% chunk: .30 * €9,181 = ? (you figure this out, too)
Now add the tax on all three 'chunks' together to find his total tax: €0 + ? + ? and enter it in the space below.
Fred currently earns $10,100 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His
employer is willing to pay Fred $11,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income
exclusion for next year is $112,000.
Required:
a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas
for the entire year?
a-2. If Fred's employer also provides him free housing abroad (cost of $21,100), how much of the $21,100 is excludable from Fred's
income?
b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much
U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year?
c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S.
gross income…
Mio was transferred from New York to Germany. He lived and worked in Germany for 349 days in 2023 and can show
that his tax home is now Germany. Mio's salary for 2023 is $230,400. Assume a 365 - day year. In your computation,
round any division to four decimal places before converting to a percentage. For example, 0.473938 would be rounded
to 0.4739 and converted to 47.39%. If required, round your final answer to the nearest dollar. What is Mio's foreign
earned income exclusion?
Chapter 5 Solutions
Individual Income Taxes
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Holly was injured while working in a factory and...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Ted works for Azure Motors, an automobile...Ch. 5 - Prob. 12DQCh. 5 - Eagle Life Insurance Company pays its employees...Ch. 5 - Several of Egret Companys employees have asked the...Ch. 5 - Prob. 15DQCh. 5 - Tammy, a resident of Virginia, is considering...Ch. 5 - Andrea entered into a 529 qualified tuition...Ch. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Valentino is a patient in a nursing home for 45...Ch. 5 - Prob. 21CECh. 5 - Ellie purchases an insurance policy on her life...Ch. 5 - Prob. 23CECh. 5 - Leland pays premiums of 5,000 for an insurance...Ch. 5 - Jarrod receives a scholarship of 18,500 from...Ch. 5 - Prob. 26CECh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - LO.2 What is the taxpayers gross income in each of...Ch. 5 - LO.2 Donald was killed in an accident while he was...Ch. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - LO.2 Leigh sued an overzealous bill collector and...Ch. 5 - LO.2 Determine the effect on gross income in each...Ch. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - LO.2 Belinda spent the last 60 days of 2019 in a...Ch. 5 - LO.2 Tim is the vice president of western...Ch. 5 - LO.2 Does the taxpayer recognize gross income in...Ch. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - LO.2, 5 Rosas employer has instituted a flexible...Ch. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - LO.2 Tonya, who lives in California, inherited a...Ch. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - LO.4 Vic, who was experiencing financial...Ch. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Prob. 1CPACh. 5 - Jeffrey Dean, a Masters Degree candidate at North...Ch. 5 - Linda is an employee of JRH Corporation. Which of...Ch. 5 - Kim was seriously injured at her job. As a result...Ch. 5 - Danny received the following interest and dividend...Ch. 5 - Prob. 6CPA
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