It has been suggested that tax policy favors deductions for AGI compared to deductions from AGI (Itemized Deductions). For this discussion, describe two (2) ways in which deductions for AGI are treated more favorably than itemized deductions. Provide at least two (2) examples of each type of deduction (for AGI and from AGI)

It has been suggested that tax policy favors deductions for AGI compared to deductions from AGI (Itemized Deductions). For this discussion, describe two (2) ways in which deductions for AGI are treated more favorably than itemized deductions. Provide at least two (2) examples of each type of deduction (for AGI and from AGI)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 16DQ

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Similar questions

In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In some cases, making such contributions may result in avoidance of tax. Explain these statements.
Briefly explain the precise difference between a refundable vs. a nonrefundable tax credit. Provide one or two examples of each category.
Which of the following statements is correct? O a. A tax offset can result in a refund if it relates to franking credits. O b. Tax offsets are same as allowable deductions as both reduce assessable income. O c. Any tax offset can increase deductions. O d. Tax offsets are used to reduce your taxable income.
What are the advantages of claiming the standard deduction versus itemizing deductions on your federal tax return? How will you know which one is the preferred approach?
Which is correct? a) The de minimis benefits not exceeding their thresholds are exempt from income tax. b) The de minimis benefits not exceeding their thresholds are subject to fringe benefit tax. c) The de minimis benefits not exceeding their thresholds are subject to regular tax. d) The de minimis benefits not exceeding their thresholds are deductions from gross income
The evaluation of a tax system’s fairness requires a particular concept of fairness, or equity, and a means of measuring how a tax system redistributes income to make the distribution more-------------------------------. * Alternative to the standard deduction, whereby a taxpayer deducts the total amount of money spent on various expenses, such as gifts to charity and interest on home mortgages is called-------------------------- deductions * Tax -------------- are amounts by which taxpayers are allowed to reduce the taxes they owe to the government through spending, for example on childcare * Tax deductions are amounts by which taxpayers are allowed to reduce their taxable income through spending on items such as charitable------------------- or home mortgage interest
There are three general views regarding interperiod income tax allocation: no allocation, partial allocation, and comprehensive allocation ( Use accounting theories and SFAC No. 8 for part a,b,c) a. Defend the position of no allocation of income taxes.  b. Defend the position of partial allocation of income taxes.  c. Defend the position of comprehensive allocation of income taxes.
There are three general views regarding interperiod income tax allocation: no allocation, partial allocation, and comprehensive allocation. Required: A. Defend the position of the no allocation of income taxes. B. Defend the postion of partial allocation income taxes. C. Defend the postion of comprehensive allocation of income taxes.
Differentiate EXCLUSIONS, DEDUCTIONS and CREDITABLE WITHHOLDING TAX based on their similar attributes. Only one differentiation is to be considered.
Which is not one of Adam Smith's canons (principles) of taxation A. Economy in collection B. Certainty OC. Convenience of payment D. Simplicity E. None of these
Which of the following statements is most correct? a.Tax preference items for the alternative minimum tax are always added back to regular taxable income. b.Itemized deductions that are added back to regular taxable income for the alternative minimum tax are preference items. c.Tax preference items for the alternative minimum tax can be an increase or decrease to regular taxable income. d.All taxpayers are able to deduct the full exemption in the calculation of the alternative minimum tax.
Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.