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9 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The following statements are true... |
In theory, the IRS should collect the same amount of tax on a worker's compensation, whether the worker is an employee or an independent contractor. The IRS believes that contractors pay less taxes than employees. An employer has a financial incentive to treat workers as independent contractors rather than employees. |
Chapter 15, page 444 False Statment: If the IRS reclassifies a worker from independent contractor to employee, the employer is not liable for the employee's share of the unpaid interest and penalties. |
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Tom's annual compensation is $190,000. What is the maximum amount that Tom's employer may contribute to a defined contribution plan on his behalf in 2013? |
$51,000 |
Chapter 15, page 465. $51,000 is the maximum contribution amount for 2013. |
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The following statements are true. |
The interest earned on state and local debt instruments is excluded from income for federal tax pursposes. Treasury notes have maturity periods of 1 to 10 years. The interest on U.S. debt obligations is subject to federal income tax. |
Chapter 16, page 494 False Statement: Treasury bonds have maturity periods from 10 to 30 years. |
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The following statements are true about the tax policy reasons offered to justify a preferential rate for capital gains. |
Capital gain accrues over time but is taxed only in the year of sale. Therefore, it is taxed at a higher marginal rate than would have been likely if gain had been recognizable it accured. A preferential rate is necessary to counteract the effects of inflation. |
Chapter 16, pages 505-506 False Statement: A preferential rate discourages the mobility of capital. |
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Julia owns an apartment complex. She is active with respect the this rental activity. This year, the complex generated a loss of $75,000. Assuming that her AGI before this item is $95,000 and there are no other passive activites, what can she deduct? |
$25,000 and carry over the rest of the loss. |
Chapter 16, pages 508-510. $95,000 is less than AGI threshold of $100,000, thus, $25,000 of loss is deductable. |
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The following statements are true. |
Collect statements from Dawn |
False Statement: An employer has no financial incentive to treat workers as independent contractors rather than employees. |
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Tom's annual compensation is $205,000. What is the maximum amount that Tom's employer may contribute to a defined contribution plan on his behalf in 2013? |
$51,000 |
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The following statements are true about the tax policy reasons offered to justify a preferential tax rate for capital gains. |
Get true statements from Dawn |
False Statement: A preferential rate is not necessary to counteract the effects of inflation. |
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Julia owns an apartment complex. She is active with respect to this rental activity. This year, the complex generated a loss of $75,000. Assuming that her AGI before this item is $130,000 and there are no other activites, what can she deduct? |
$10,000 and carry over the rest of the loss. |
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