Tax

DEBUNKING TAX DEPRECIATION MYTHS There is a lot of ambiguity surrounding laws regarding tax depreciation deductions. Many people fail to claim their full returns due to simple misunderstandings regarding these laws. Depreciation is the key to augmenting cash-flow on a residential or commercial property. We will take a look at some of the prevailing myths and debunk them. Myth #1- You can only depreciate new properties An investment property does not necessarily have to be brand new in order to

Portfolio Project ACT400 Corporate Tax-ACT400 September 1st, 2012 Portfolio Project ACT400 I. Problem 1-Osprey Corporation a. Facts Dan and Patrick Zimbrick, sole shareholders of Osprey Corporation have been required to repay compensation to Osprey Corporation that was found by the IRS to be excessive. In order to determine how these repayments are to be treated for tax purposes, it is important to note that in 2006 the board of directors made up of Dan, Patrick

October 2, 2014 Tax File Memorandum To: Brett Ouray Facts Kathy and Brett Ouray were married in 1996. In 2014, they consider themselves completely estranged. Due to financial reasons they have decided to not get a divorce or live separately. They also do not have any legal documentation of separation and neither of them has lived outside the home for a significant amount of time. They currently reside together with their three children. They have decided that Brett has contributed more to

withdraws $33,000 from the partnership during the year. What are Beth’s and Tom’s bases at the end of the year? Tom – 26100 Beth - 51900 4. Shanana Corporation has the following income and expense items for the current tax year: Dividend income received from 60%-owned domestic corporations $100,000 Net income from operations 30,000 What is the amount of the dividends received deduction? 80%*100,000 = 8000 80%*30,000 = 2400 8000-2400 = 5600 5.

A tax class should be given in schools due to them being useful in the future. Teenagers soon to be in the adulthood should be already be prepared consequently should know already how taxes continue used, how they're gathered up accordingly knowing how to properly add the numbers up. Teenagers at school should be already be exposed to this type of problems that apparently adults deal with. Having a tax class will be surely beneficial: for the people who are ready to live in their own apartment moreover

In 1913, the 16th Amendment gave Congress the power to tax income, no matter the source. Since that time, the government has become increasingly reckless with its spending habits and has steadily increased taxes in efforts to reduce the national debt. Our federal tax system is not appropriate and is in desperate need of improvement. As the years passed, the government increased the number of things that were taxed for both business and personal. When borrowing funds left it deeper in debt, the government

At the end of the Carter presidency, the nation’s idealistic dreams of the 60’s was worn down by inflation, foreign policy turmoil and rising crime rate, the nation was troubled by the late 70’s. Due to this many Americans were ready to embrace a new conservatism in social, economic and political life in the 80’s. In the 1980 bid for President, Reagan won the Republican nomination after two failed attempts in 1968 and 1976. Although Ronald Reagan once held Democratic views, he grew more conservative

There is a very clear distinction between tax avoidance and tax evasion from academic publications. Tax books have defined tax avoidance as “the lawful minimization of tax liability through sound financial planning techniques, while tax evasion is the “unlawful attempt to minimize tax liability through fraudulent techniques to circumvent or frustrate tax laws”. The consequences of either action are also clear. The former is not punishable by law while the latter is. However, the lines between evasion

The United States debt and defecit is a major problem in our society. One thing I would propose to the President would be to tax the rich. Time. It's useful to keep in mind how the rich are different. When you are poor, you are willing to trade your time to earn money. When you are rich, you trade your money to get more time. For example, the rich hire people to clean their homes, and they don't waste time shopping for bargains. In business school I learned that when people have different preferences

Tax planning is a process of analyzing one’s financial situation with reference to its tax implications. In order to minimize tax payments, a taxpayer can plan financial activities to maximize tax savings. There are many different ways to create a tax strategy, and many different factors and situations that need to be taken into account. One of the first steps in creating a tax plan is knowing the tax rate (Spiegelman, 2015). This can easily become complicated, tax rates vary with income and type