John Smith Tax Issues Essay

What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt)?

Since John and Jane do not have employer sponsored retirement programs, I recommend establishing traditional IRA’s. This will allow both of them to have a retirement program and a tax deduction each year of $10,000 (§219(f) (3)) (Tax Almanac, 2007, April 27). John is able to establish Jane’s IRA and contribute since she has minimal income (Code §219(c )) (Tax Almanac, 2007, April 27). With the lease payment of $42,000 and the IRA’s of $10,000, John will have deductions of $52,000 against the $300,000 and an additional deduction of paying half of the self employment tax.

2(a) What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes?

When looking at liability, creating an LLC will limit the owner’s exposure to just his invested amount. This will legally shield his home, bank accounts, family’s property and other personal assets from seizure or liquidation in the event the company is held responsible for any of the situations mentioned, such as a cabinet falling or subcontractor failing to perform. It would also protect him in the event the expansion of his company fails, and a worst case scenario of the company going under.

Income Taxes- Taxes are paid as income tax, unless the limited partnership is classified as a corporation by the IRS for tax purposes. In order to keep from being taxed this way, you would have to stick solely to the contract as written, and keep away from operating outside of the agreement.

2(a) Jane inquired concerning what the tax treatment difference if any there is in paying down a mortgage and assuming a new mortgage in terms of federal taxes.

The second case is based on taxability of Income and deductions arise from the transactions related to property and its maintenance. It

Fruitful tax planning consists of many efforts to shift income into tax-advantaged vehicles, deferring or accelerating income and expenses, keeping on the right side of tax laws and investing in retirement plans to earn money tax-free or tax-deferred. However, the most practical ongoing strategy for directly reducing your tax burden if you own a business is taking advantage of any deductions that are available to you.

The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute

One proposal for the lowering of taxes in the United States is Herman Cain’s 999 Plan. Herman Cain is a republican politician running for president in the year 2012. The 999 Plan is a tax reform plan that would change personal income tax, national sales tax, and corporate sales tax all to nine percent. (Astor) The argument for the plan is that it would strengthen the economy and create jobs because it would lower taxes by 26 percent on businesses, therefore giving them incentive to start hiring, therefore creating new jobs for Americans. Currently the United States Unemployment rate is at 9.1 percent. Also corporations would be more willing to bring their profits home due to the lower

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

The Spanish taxation structure has proved to be a major hitch particularly to footballers and other high earning professionals. Foreign professionals have been the hardest hit by the taxation policies in the country. Generally, the taxes are levied by the federal government as well as the regional governments. Different taxes are imposed depending on the source. The most common tax forms are: income tax, corporate tax, value added tax among others. The Agencia Estatal de Administracion Tributaria is often responsible for the collection of national as well as the regional taxes. The Spanish tax year is often in line with the normal calendar year. The mode of

With the loss of tax revenue, the government is going to be forced to completely restructure their current budget protocol. With the mass amounts of tax breaks given across the wealthy, there is going to be lower taxes available to use for government ran programs. These programs are extremely important the success of many Americans across the nation. Without a lot of these programs such as; SNAP, Welfare, Social Security, Unemployment, millions of citizens wouldn’t be able to live. These programs provide day to day support to people; for food, housing and many other things, but the proposed bill/tax cuts, are going to force these programs to cut back massively. Because there just isn’t going to be enough government funds to properly hit

In America, the powerful and wealthy are able to abuse the taxation system to their benefit, and this paper will demonstrate how this is done and the solutions to those problems, as well as refute the opposition.

One of the greatest challenges that Republican President Donald Trump is facing today is that of fulfilling his promise to the affluent Americans that he would lower the taxes that are being levied on them. Many economists have voiced their opinion on how such a move might widen the current gap between the wealthy and low-class Americans, a matter that is apparently not convincing President Trump. House Republicans returned to business last week after their August recess, a top agenda for them in the subsequent sessions will be drafting a ‘major tax-cut bill for Congress to pass’ (Editorial par. 1). It is not clear how the debates on this proposed legislation will turn out, but I am hopeful that whatever happened on the