Sales tax

The first was reducing the growth of government with its spending on both income tax front and capital gains taxes. (Longley, Mayer, Schaller, 2015) The second followed reducing inflation by controlling the growth of the money supply itself. The third issue focused on regulation of supplies and trade within the United States. President…

COST OF GOODS SOLD Cost of goods sold is a deduction on a taxpayer’s taxable income. For tax purposes, Piratephernalia Corporation must capitalize a portion of their overhead expenses into the annual inventory calculation. Additionally, cost of goods sold includes only the inventory sold throughout the fiscal year. Unsold purchased inventory will not be deducted from the taxable income. INTEREST INCOME Generally, state bond interest is exempt from taxation. Further, interest income from…

proposition 30 back in 2012. The reason why they changed this proposition to number 55 is because they want to expand it and revise this proposition. The difference between the two is that in proposition 55, they do not want to continue to extend the sales tax. Their purpose is to extend this proposition because they believed the money will help fund education and health care for low income…

between the two tax structures is the U.S. does not receive revenue from value-added taxes and the U.K. does not receive revenue from sales taxes. Another difference is the tax base of the U.S. is more than 10% smaller than the U.K. Both countries are similar in allowing personal standard deductions for each dependent. Another similarity is both tax systems’ personal income tax is the greatest source of revenue for the federal and central government. The tax systems are also similar in tax…

After toiling in the workplace for decades, it seems natural to expect easy living in your golden years. If you have planned your finances efficient, then this may be the case. Yet, a lack of resources and financial planning continues plague many Americans. Typically, retirement planning encompasses a detailed account of your expected expenses. This can include leisurely activities, such as vacations and travel, to necessities, such as taxes. In particular, where you plan on retiring can…

corporation that has more than 50% of the value of its outstanding stock owned (directly or indirectly) by 5 or fewer individuals at any time during the last half of the tax year, and isn't a personal service corporation. According to IRS publication 542 and 544, a closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers. For the passive activity rules, they apply to…

Topic #3: Tax Cases Question #1: Provide an overview of and the ruling for the Corn Products Refining Co. Case. Answer: In the Corn Products Refining Co. case, the company had purchased corn futures in order to ensure that the corn needed for operations could be obtained in times of shortage or raising prices, without the need to worry about storage capacity limitations. The company reported the gain or loss on the futures as ordinary income and losses in 1940 and 1942, however the…

weighing on the project itself. For instance, in United States, issuers of ICOs are ill benefitted as close to 40% (effective tax rate) raised through ICOs go to the govt.’s coffers, which wouldn’t have happened in the case of PE-VC investments or an IPO stake sale. This is because regulators are not certain on considering tokens as securities, and thereby consider the token-sale as revenue generated from operations. Thus, this is a case for prolonged regulatory uncertainty and requires swift…

Relevant Facts Armando Perez a citizen of Colombia who has owned three Real Estate Properties in the US titled to his name. Colombia does not have a tax treaty with the US. Properties A, B, and C were purchased on January 1, 2014 and their adjusted bases and fair market value are $97,800/150,000, $86,223/135,000 and $52,077/155,000 respectively. There is no depreciation recapture on any of the properties and they are currently rented and no significant improvements have been made to the…

funded by tax dollars. In addition to this, social security would not be properly funded and many retired workers would not get paid and would then not have access to basic needs without going out and finding a new job; however, many would not be able to get a new job to replace the money they would have gotten from Social Security due to ailments or old age. The United States would end up with significant unemployment, because stores that sell luxury goods would see sharp declines in sales,…