Xenon, LLC is a partnership, for tax purposes, with a C corporation member. Xenon has three year average annual gross receipts of $24 million from the retail sale of merchandise. Xenon may use the cash method for all purposes of tax reporting, without limitation. Select one: True False   Digital Video Recorders is an accrual method taxpayer that uses the calendar year as its tax year. Digital offers customers a refund if they are not satisfied with their products. During X1, 100 customers request a refund of the $500 purchase price. Digital refunds $30,000 on or before September 15, X2. It refunds the remaining $20,000 in October X2. If Digital adopts the recurring item exception with respect to the refunds, economic performance is treated as having occurred in X1 for the $50,000 refunded in X1. Select one: True False

Jahid (a mechanic) paid for the following items during the current tax year (2019-2020) and has approached you asking which of them are deductible from his salary income. He is a single tax resident for the year: Protective shoes and sunglasses with the cost of $600 all together Non-compulsory uniforms with the cost of $300 Compulsory uniforms with the cost of $700        Explain in detail (using a table for all the items above) with relevant tax laws and cases. Kindly use the four sections below for each case in your table. Facts of the scenario Relevant laws and cases Application of laws and cases Conclusion

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC for the year. Jacob's marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income? b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction?

Prior to the effect of tax credits, Paco's regular income tax liability is $145,000 and his tentative AMT is $120,000. Paco has nonrefundable business tax credits of $32,000. Paco's tax liability is $113,000. True False

Mr. A owns all of the interests in a limited liability company (LLC) that customizes accounting software for business customers.  LLC reports its income on the accrual basis and the calendar year.  As sole owner, Mr. A must report all of LLC’s income on his joint Federal income tax return. For all years through and including Year 2, LLC followed the practice of booking revenues monthly based on the monthly bills that it issued to its customers.  In Year 3, LLC continued this practice with respect to all of its historical customers. However, during Year 3, LLC agreed with one new customer (New Customer) to hold off on billing until the entire project was complete.  LLC began work and logged $100,000 of time and other charges during Year 3.  LLC completed the project and billed the customer $250,000 in Year 4. What amount(s) should Mr. A include in his income with respect to the New Customer project?   I put 100k in year 3, but my professor had $0 for year 3 and 250k for year 4.

Purple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar. a.  Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $37,520 deduction for qualified business income. Kirsten's taxable income is $, and her after-tax income is $. b.  Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.…

During the current year, Jack and Mary Bronson paid the following taxes: County taxes on residence (for period January 1 to September 30 of the current year): $2,700 State motor vehicle tax on value of the car: $360 The Bronson's sold their house on June 30 of the current year under an agreement in which the real estate taxes were not prorated between the buyer and sellers. What amount should the Bronson's deduct as taxes in calculating itemized deductions for the current year? Group of answer choices $3,060 $2,700 $1,800 $2,160