Homework Es Week2

Bingo Corporation incurred a net operating loss in 2012. If it carries the loss back, it must first carry the loss back to offset its 2011 taxable income and then it carries any remaining loss back to offset its 2010 taxable income.
 False

* The owner is responsible for filing taxes and is allowed to file taxes as part of their personal income taxes.

For the current year, Water reports and $80,000 long-term capital loss and no capital gains.

better to take a full advantage of reporting the income and report the business expenses as

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn’t keep any significant inventories of the specialized assets that he sells. Joe reported the following financial information for his business activities during year 0. Determine the effect of each of the following transactions on the taxable business income

basis of $110,000. Even though § 351 applies, Tina may recognize her realized loss of $10,000.

In 2012, Bluebird Corporation had net income from operations of $75,000. Further, Bluebird recognized a long-term capital loss of $30,000, and a short-term capital gain of $10,000. Which of the following statements is correct?

IRC Sec. 213(a) states that “there shall be allowed as a deduction the expenses paid

Choice "d" is correct. Per the above rule, unless an exception exists (and it does not in this case, as Lane's modified adjusted gross income is in excess of $150,000), passive losses may only offset passive income for a tax year (i.e., no "net loss"

The equipment can be depreciated by one of two methods: Section 179 allows for a full write off in the year of acquisition (subject to certain limits). MACRS depreciation allows a systematic write off of equipment based on the type of asset. More business assets are either 5 year or 7 year property (CompleteTax, 2012).

This distinction is important, as a business is allowed to deduct items such as travel, tool and home office expenses.

A corporation cannot use net operating losses between C corporation years and S corporation years, with the only exception that net operating losses from C corporation years can reduce net recognized built-in gains from S corporation years.

Protecting employees against reprisals when they report, in good faith, actions they feel violate the law or these standards.

Which of the following is not a required test for the deduction of a business expense?

According to articles, These are work related deduction in in Australian tax legislation and the most common work related deduction previous financial year was travel expense, clothing (uniform) , Phone & internet expense, self-education and Home and work equipment. These are particular types